Deborah 测试三-Essay.docVIP

Introduction The issue of poverty and unemployment has become a hot spot since the global financial crisis in 2008, which caused a large scale of laid-off employees. Nevertheless, scholars have been paying close attention to those issues on their theoretical and realistic implications for a long time. On the whole, they attribute poverty and high unemployment to various factors, such as economic structure, labor quality, maturity of labor market, and etc. As for China, the unique history and condition decide the unique causes of poverty and unemployment. This essay will firstly discuss the causes of poverty and unemployment in China. Following this, it will analyze if economic structure can well explain these issues. Finally, it will give a general conclusion of the factors involved in the issues and put forward practical suggestions. Causes of Poverty and Unemployment in China According to the actual situation and present studies, poverty and unemployment happened in China basis on the following causes. First is the economic system. When planned economic transferring into market economic, resources adjusted and disposed mainly through the invisible hand. During the transitional period in 1990s, in order to improve productivity and enterprise efficiency, a huge amount of inefficient workers lost their jobs (Linda Y., 2010). In fierce market competition, bad management enterprises will fail and kicked out of the market eventually, and poverty comes along. Even the effort to expand employment remains a lot of institutional obstacles. In spite of the free labor force fluxion, the household registration system which plays an important role in China, relates to the salary, social security and even the education of children, not only increase the cost of fluxion, and leads to the lack of stable employment. Second is about the population factor. China is a developing country with the largest population in the world. What is more, China is still at a stage that labor force