2016-01-20

Migrant Population Falls, First Time in More Than 30 Years; Urbanization Strategy Highly Limited

China's urbanization strategy cannot work because the people needed to grow the economy don't exist. They were never born. The population flowing into the cities has begun to fall, the percentage gains will fall with increasing rapidity as the population drops and the urban economy grows.
Most people on the 2015 estimated annual statistics released today, are not concerned about a change in the flow of population data. In fact, this is a very interesting data. Because the GDP growth rate hit a new low in 25 years, in fact, have a great relationship with the reduction of migrants.

...In fact, the reason is very simple, China's working-age population (16-59 years old) from 2012 began to decline, 2015 is the fourth annual decline, the cumulative reduction of more than 13 million. And 15 years and the first time to reduce the phenomenon of migrants, which should be 30 years for the first time . The so-called floating population, refers to the city of residence and domicile isolated population.
Here's the chart I posted in 2011 in Labor costs soar in China. The entry level workforce has been shrinking each year since the start of the decade.
I remember 2013 and 2014, migrants increased more than 8 million per year, a total of 253 million, but in 2015 actually decreased 5.68 million. Migrants are mainly migrant workers, which means that the number of migrant workers into the city in 2015 turned out to be declining.

In 2010, when the number of migrant workers going to cities was more than 12 million, after then drop by about two million every year, then by 2016 is reduced to zero. I did not expect to see the city's population negative growth a year ahead of schedule. Estimated resident population of Shanghai, Beijing in 2015 is declining, the country's congestion will improve over time.

Working-age population and migrants at the same time reduced, which should be 30 years of reform and opening up the first occurrence. Labor are the three factors of production is the most important factor, so that economic growth is actually the demographic phenomena. Reduction in labor supply, will inevitably bring about a decline in economic growth.
And here it is in a nutshell if you're still hazy on the implications:
Official data show that in 2015 China's urbanization rate increased by 1.6%, although the number of migrant workers shows negative growth. But that does not mean the Chinese economy also can rely on urbanization and has huge potential. Because regional economic growth in many cases is driven by immigrants.
China cannot rely on urbanization for growth because movement from rural to urban is too small a number. This is highlighted by the fact that many areas hope to drive growth by attracting migrants, but there aren't enough to go around.
iFeng: 30多年来首次出现流动人口下降,这意味着什么?

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