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MANUFACTURING EMPLOYMENT AND COMPENSATION IN CHINA - page 103 / 106

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countryside without necessitating massive migration from the villages to cities. In the 1980s and especially the 1990s to today, TVEs shifted from public toward private ownership, and many foreign-funded enterprises became classified as TVEs. Now the TVE category, in addition to including small local enterprises, can also include very large factories in industrial parks outside cities, as well as suburban, town, and rural factories. Companies have incentives to have their factories classified as TVEs, because required social insurance payments are very low, statistical reporting requirements are minimal, and there are many legal and taxation benefits.

Unemployment insurance fund

shiye baoxian

Unemployment rate:

shiye lu

The calculation of the unemployment rate in China is non-standard. The rural unemployed are completely ignored in the calculation. China’s unemployment rate is based on city data only and does not include the unemployed in towns that have been established as urban places. The figure used in the numerator for calculating the unemployment rate is so-called “urban registered unemployment.”

chengzhen dengji shiye

These are adults living in cities whose permanent population registration (hukou) is located in that city where they live, who are in the legal working ages of 16-59 for men and 16-54 for female white-collar workers and 16-49 for female blue-collar workers, and who are formally registered as unemployed. “Urban registered unemployment” does not include laid-off workers who are still associated in any formal way with their former work unit, and does not include workers who have been forced to retire early, and does not include in-migrants whose permanent population registration is outside that city.

The denominator of the unemployment rate is the sum of employed workers in legal working ages whose permanent population registration is in the city where they live plus the urban registered unemployed.

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