China’s unemployment rate came in at an incredibly low 4.1% for Q3, according to China Daily.
But what does that unemployment rate really include?
Only 9.05 million urban Chinese claimed to be unemployed in Q3.
So, if 9.05 million is 4.1% of the urban workforce, that means the total workforce is 231.7 million, by our calculations.
But the total population of China was 1.325 billion in 2008, according to the World Bank.
In other words, China has hundreds of millions who aspire to join the party that’s currently happening in the big cities. This constitutes a massive problem for Beijing. And thus although the economy is humming, the country isn’t really in a position to slow its growth by revaluing its currency.