(ECNS) -- China may see a new round of massive unemployment as small and medium enterprises (SMEs) downsize and state-owned enterprises (SOEs) restructure, said Professor Zeng Xiangquan, director of China Institute for Employment Research, at a recent forum in Beijing.
Latest employement index released on November 9 by China International Intellectech Corporation (CIIC), a state-owned human resources group, suggest that China's SMEs are downsizing in the third quarter, the first time in six straight quarters.
Hot businesses such as high-tech industry, bio medicine, education and media have stopped a continuous hiring drive since 2014 and started to fire employees.
Zeng said the downturn will work together with the restructuring of state-owned enterprises (SOEs) to build up pressure on the labor market, with SOE employees the first to see the impact.
He added that official unemployment records from the National Bureau of Statistics has failed to sensitively interpret the reality, which the country should be fully aware of and prepare for.
