Xiagang and re‐employment policies in Shanghai

Abstract

Purpose

The purpose of this paper is to provide an overview of the job creation policies being used to address the high unemployment rate and number of xiagang in Shanghai.

Design/methodology/approach

Using primarily Chinese language sources, the context of employment issues are discussed. This is followed by a brief analysis of each issue.

Findings

Among the numerous setbacks caused by the ongoing reforms, xiagang and urban unemployment have become one of the most serious problems for the Chinese leadership. There are no panaceas on offer and just which combination of measures should be chosen is a matter for debate. Some combination of a less restrictive labour market, expansion of infrastructure investment and stimulation of re‐employment involving public and private partnership in areas where the market is unlikely to generate spontaneously appears as a suitable way forward. Recruitment subsidies are not favoured as a solution while a focus retraining on smaller, well‐targeted schemes for recognizable areas of skill shortages while simultaneously making counselling and job search advice more widely available is favoured. Finally, the Chinese government has recently shifted its development strategy from one of centring on economic growth to one aimed at the sustainable development of the society. Such a shift is appropriate and desirable for China as the move enables the nation to alleviate rather than aggravate the social problems arising from its high economic growth achieved during the past twenty years.

Practical implications

While China defines unemployment differently to other countries and has the unique phenomenon of xiagang, this paper provides a platform for considering future policy development in the employment area.

Originality/value

As much of the source material for this paper is only available in Chinese, the paper provides insights into one complex and challenging employment issue in the Chinese economy and presents opportunities for non‐Chinese speaking scholars to review the current debate.

Citation

Xu, L. and Bennington, L. (2008), "Xiagang and re‐employment policies in Shanghai", Management Research News, Vol. 31 No. 12, pp. 976-986. https://doi.org/10.1108/01409170810920675