The World - News from June 14, 1988

Chinese factories and offices have at least 20 million excess workers, which costs the government billions of dollars each year, the official New China News Agency said. The news agency said overstaffing costs the nation about $16.2 billion a year, equal to half the total revenue the state receives from enterprises each year. Many employees spend working hours playing cards or watching television, the report said. China, with an urban work force of 120 million, has cited low productivity and surplus workers as major obstacles to its drive to modernize industries. But the government is also committed to keeping unemployment at the current stated level of 2%.