Labour Market In China

2321 Words10 Pages
Challenges to be resolved and how to overcome them Labor market After the Chinese Revolution of 1949 the government had to reform the society and the economy. In this situation, farmers, which were supporters of the revolution, should logically be the in priority, when thinking about the future tendency of the labour market. At this time there was huge destruction of civil war, so China had to economically rebuild the country. Also, they had to create new jobs for the population as the proportion of people capable of working was increasing a lot. Another problem was the politically isolation of China. And the government did not have enough money to rebuild the country. Because foreign investors were solely interested in the industry sector, China copied the soviet model of industrialization. So, they had to concentrate on developing the industrial sector. In first instance, the focus was on the heavy industry, which is very capital-intensive. But as foreign companies invested in this sector, people got jobs and the government didn’t have to pay a lot. Although the agricultural sector played an important ideological role, there was no concern of any foreign investor in this sector. As result of this, the Chinese government reduced the agriculture to produce commodities and aliments for the Chinese population, especially for the urban population. This fundamental political decision entailed a very strong difference between cities and the countryside in the hinterland. There is a rigid hierarchy of urban and hinterland population (Dietrich, H. (1993). Mitteilungen aus der Arbeitsmarkt- und Berufsforschung: Das Arbeitssystem der VR China. 26. Jg. 1993. URL: http://doku.iab.de/mittab/1993/1993_1_MittAB_Dietrich.pdf [31.03.2012]). After the dominance of Mao Ze Dong up until 1976, Deng Xiaoping had to lead China out of the reign of terror and so he built in the
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