CHINA The rapid deceleration of economic growth in China as a result of the global recession will severely test Beijing’s ability to maintain social stability at a time when the unemployment rate, especially among university graduates and migrant labourers, is soaring.
Based on government data and expert estimates, 10m migrant labourers lost their jobs last year. In addition, 1.5m of the 5.6m university graduates in 2008 have not been able to find jobs. If anything, the employment situation is likely to deteriorate in 2009. Economic growth will slow further because of the decline in exports and the bursting of the real estate bubble.
