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Structural Imbalance Leads to Unemployment Problems.doc
Structural Imbalance Leads to Unemployment Problems
Lin Chen, a former employee for a Holland-based company in Guangzhou, has been jobless for four months. During the four months, his feeling went through a great change. Nowadays, even though he keeps looking for any vacant positions on the website, he found it difficult to find a proper job.
“If your jobless situation sustains for another month, will you lower your requirements for salary?” When asked that question, Lin Chen seemed to be very hesitant. Slowly he answered: “I am not sure.”
Behind Lin Chen’s predicament are the massive lay-offs of foreign companies against the background of global economic recession. From the end of 2012 to the first half of 2013, Avon, Motorola, IBM, HSBC Life Insurance, Hewlett-Packard, Siemens and others cut thousands of jobs in China. The domestic leading enterprises also joined in the rank of firing people. Zoomlion and Sany were reported to reduce a number of employees in an indirect way.
With the influence of the global lay-off wave, the human resource market in China is facing the unemployment problem caused by the structural imbalance. On one hand, the emerging industries are in great need of highquality talents; on the other hand, the traditional industries are needing fewer and fewer workers.
The new Labor Act took effect as of July 1, 2013, which posed higher requirements for enterprises. Some companies had to reduce the employment in order to save the labor cost. Therefore, some companies believe that the employment situation might get worse in the future.
The Shattered“Golden Bowl”
Lin Chen used to work for a Holland-based shipyard. Like him, this industry also went through the change from top to the bottom.
“At that time, there were too many orders given to the shipyard to be completed in three years,” Lin Chen said. The “time” he talked about was the year of 2008, when his company was at its peak. It rented a property that covers 3,000 square
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