Constructing alternative unemployment statistics in China

This paper presents alternative unemployment statistics for China, encompassing the extended unemployment rate (U5), which incorporates marginally attached workers, and the nonemployment index (NEI) proposed in recent literature (Hornstein et al. in Econ Q 100(1):1–21). The analysis spans from 1988 to 2021, merging recent data (2012–2018 and 2018–2021) with early estimates (1988–2009). Our findings indicate that both standard and alternative unemployment statistics reveal similar trends in China: a rise in the labor force participation rate and a decline in the unemployment rate since 2012, marking a reversal from the trend before 2009. Additionally, unemployment measures in China align more closely with those of affluent countries from 2007 to 2018 and with less affluent countries from 2018 onwards. Moreover, U5 demonstrates enhanced predictive capabilities for wage dynamics in China’s labor market during the recent 2012–2018 period. Lastly, we delve into the discussion of errors in labor market status data.