The number of China’s urban unemployed dropped...

The number of China’s urban unemployed dropped by more than 50% in the first six months of 1990, according to official figures released last week, but economists questioned their accuracy.

The New China News Agency reported that the number of workers laid off under China’s 2-year-old austerity program fell to 2.84 million in June from 6.68 million, or 6% of the work force in state and collective enterprises, in December, 1989.

However, economists said such figures may be misleading and the real level of unemployment is much higher. “There is no foolproof definition of unemployment in China when 90% of the workers are employed for life and cannot be fired,” said one Beijing-based Western economist.

The underemployed, those who have jobs but do little or no work, total in the tens of millions, he said.

Diplomats said the state is eager to find jobs for the officially unemployed to avoid expensive employment insurance payments and the possibility of social unrest among workers who took part in pro-democracy protests last year.