Behind stable job data, China grapples with hidden unemployment

BEIJING (Aug 22): Cracks are starting to show in China's labour market as struggling industrial firms leave millions of workers in flux.

While official jobless numbers haven't budged, the underemployment rate has jumped to more than 5% from near zero in 2010, according to Bai Peiwei, an economics professor at Xiamen University.

Mr Bai estimates the rate may be 10% in industries with excess capacity, such as unprofitable steel mills and coal mines that have slashed pay, reduced shifts and required unpaid leave.

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