China International Capital Corp (CICC) predicted that China will see "severe" employment losses in 2011 as the company’s US$586 billion stimulus concludes, reported state media. In addition, rising wages may make foreign employers more cautious about establishing new facilities in China. The National Development and Reform Commission estimates that 5.6 million new long-term jobs and almost 50 million temporary jobs were created by China’s stimulus package, but a new influx of 39 million workers into the workforce could cause a severe labor market oversupply as China’s growth slows to 7.5% in 2011. If only 8 million new jobs are created, CICC anticipated unemployment numbers could reach 31 million.
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