stronger economic growth, especially in the private sector and the more labor-intensive service industries, which have generated the most jobs in recent years.paper first discusses trends in the Chinese labor market before outlining the progress on reforms. It then presents an analysis of the medium-term outlook for employment and unemployment, and draws some policy conclusions.industrial relations have significantly changed from governmental paternalism to a more market oriented system for large portions of the labor force. Previous labor market institutions have either been transformed or abolished while new ones have been slow to develop. The current institutional design suggests that the labor market is not functioning in an optimal manner nor is there a clearly outlined development strategy. It remains an open question if the post-reform institutional design sets the conditions for a competitive labor market. The other question is if a competitive and fully flexible labor market is suitable for China and how the government can influence these developments. In the past and to this day China has often been associated with poor labor conditions and low wages. This constellation may be connected to the rapid economic growth but is also associated with increasing discontent and inequality, which has equally been on the rise as present labor market institutions have been struggling to create social stability. In this current environment of change trade unions have been trying to find their place in Chinese industrial relations. Recently the government has been paying more attention to the potential role trade unions could play in the Chinese labor market. Even so, under the current framework they face considerable constraints in representing workers interest.aim of this paper is to provide insight to recent developments on the Chinese labor market and the role of unions. Current literature provides various snapshots of the Chinese labor market, but comprehensive research is still very limited. As a first step to a more comprehensive understanding, this paper, as part of ongoing research, will attempt to provide insight to central aspects pertaining to labor market developments and trade unions. First, this paper will provide an overview of the transition of the Chinese labor market and its tilt toward a market based economy while highlighting some consequences for the labor force. In the second part the paper will focus on the marketization of the labor market since initial reform, specifically looking at current wage determination mechanisms while emphasizing Chinese industrial relations. In the third part attention will turn to how Chinese trade unions are functioning, focusing on opportunities and constraints they face under the current labor market conditions while also briefly taking external influences and independent unions into consideration. Finally, this paper will conclude by providing an ...
