Austerity Program Puts 3.5 Million Rural Chinese Out of Work

A senior Chinese official said Thursday that 3.5 million rural workers lost their jobs last year as a result of China’s continuing austerity program.

Agriculture Minister He Kang, speaking to reporters at a news briefing held by the National People’s Congress, China’s nominal legislature, said 1 million of the workers were laid off because of a nationwide slowdown of capital construction.

The remaining 2.5 million were workers in rural enterprises who lost their jobs when factories stopped production, he said.

Once the fastest-growing sector of China’s economy, rural enterprises have been hit hard by the country’s program of economic retrenchment.

The program’s tight money policies and preferential treatment for large state enterprises have left rural factories hurting for cash and raw materials, forcing 3 million to close down or merge with other enterprises, according to official statistics.