A Statistical Research On The Rural Disguised Unemployment In China

Unemployment is one of the outcomes of civilized society when it reaches a certain period; it is a common phenomenon of the Market Economy. After the human society begins the Industrialized manufacture, no country has ever walked out of the shadow of Unemployment, and obtaining fully employment become a macroeconomic aim pursued by both developed countries and developing countries.Disguised unemployment exists in large scales in China both in planned economy and in the process of the construction of market economy. As is known to all, there is a large number of disguised unemployment in rural area of China, which has caused a lot of trouble for social and economic development. However, the statistical method applied by the National Statistical Bureau of China is currently restricted in the urban area; the unemployment of rural area is not included. This method is based on the following conception: As China is implementing the collective ownership of land, every farmer owes their basic production material—land. As long as the farmers keep farming, they can get the product, so there is no unemployment in the rural area of China. To a certain extent, this conceals the truth that there is a large number of unemployment in the rural area of China.This paper is based on an optimal model of productive resource allocation and prerequisite of balanced capital and labor allocation. A formula to estimate the number of disguised unemployment in the rural area of China was computed. And then, this paper explains the reason for the high rate of disguised unemployment in the rural of China. Finally, some policy suggestions were given to solve the problem.