Don't pit employment indicators against economic growth targets, stressed Yu Yongding:
new.cf40.org.cn/uploads/202008…
People used to hold that when local governments are required to set economic growth targets, they normally aimed at growth only and tended to make investment blindly.1/6
However, there will be more problems if we only care about #employment and neglect economic growth. Without growth, how can we boost employment? Local governments will be more at loss when assigned only employment targets...2/6
Should they adjust statistical methods to reach a goal of 2% employment growth? Employ 102 people to do sth that can be done by 100? Make government agencies more redundant? Go back to labor-intensive industries that were prevalent in the early stages of reform & opening-up?..3/6
Talking about stabilizing employment without maintaining economic growth is to fish in the air. It would turn securing employment into providing unemployment relief and lead to lowered labor efficiency...4/6
New jobs created without economic growth can only increase hidden unemployment, at a cost of declined per capita income. Dropping the growth target will not address employment problems but may even breed corruption...5/6
Changing the industrial structure, such as boosting tertiary industry and labor-intensive industries, could create some room for more employment, but the effect may not be as good as boosting economic growth. 6/6
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