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Up-to-date Investigation Report on Rural Migrant Workers in China
CHINA POPULATION, RESOURCES AND ENVIRONMENT Volume 17, Issue 6, November 2007 Online English edition of the Chinese language journal Cite this article as: Chn Popu Res Envi, 2007, 17(6): 1–6.
SHORT COMMUNICATION
Up-to-date Investigation Report on Rural Migrant Workers in China Jian Xinhua*, Huang Kun Center for Economic Development Research, Wuhan University, Wuhan 430072, China
Abstract: One year has passed since the Advice on Solving the Problems of Rural Migrant Workers by the State Council was put into practice. The status for rural migrant workers has been improved effectively. Especially, their wages have been increased notably, the problem of default on wage payments has been alleviated, and the services offered to them by governments have been improved. However, some essential problems, such as low income and bad living conditions, have not been changed ultimately. Their strong wishes to become legal urban residents are still far from being realized. Therefore, we should carry out the current policies, make further institutional innovations, increase relevant investments, gradually eliminate institutional barricades, and fund shortage problems that prevent rural migrant workers from becoming legal urban residents, and solve the problems of rural migrant workers thoroughly. Keywords: migrant workers; becoming urban residents; up-to-date situation; investigation report
Migrant workers are a special social group under the historical conditions when industrialization, urbanization, and deagriculturalization of the rural population are not synchronous in China. (Zhu, 2005) According to the estimation by State Council Research Office Task Force (2006), there were 120 million migrant workers employed in cities in 2004. Adding these labor forces to township enterprises, the total number of rural migrant workers is about 200 million. They are the second largest labor group, only less than farmers and considerably more than formal urban workers. Although rural migrant workers have made a great contribution to cities and national economic development, they are treated unfairly. There are sorts of problems making them “vulnerable groups”. To solve the problems faced by migrant workers, the central government has issued a series of policies and set up some organizations and agencies in recent years. In March 2006, the State Council promulgated the Advice on Solving the Problems of Rural Migrant Workers by the State Council (hereinafter shortened as ASC). It is the first integrated document on the issue of migrant workers by the State Council. ASC treats the solution of the migrant workers problem as determining the success of China’s overall economic and social development and as “a
strategic task of building socialism with Chinese characteristics”. It confirms the guiding ideology and basic principles of the work of migrant workers, and puts forth the ideas, tasks, and specific measures to solve the urgent problems. Now, after a year has passed, what are the results of the implementation of ASC? What are the changes in the migrant workers’ living conditions? What are the causes for these changes? Which problems should be solved further? How to solve these problems? With these questions in mind, our research group carried a survey in cities of Wuhan, Guangzhou, Shenzhen, and Dongguan, and some rural areas in Hubei province and Henan province from February to March in 2007. In the survey, 1000 questionnaires were sent out, out of which 812 copies were returned, and 765 copies were valid. The workers in the survey were from 28 provinces, working in 19 provinces. The questionnaires include 81 issues. Our research thought is: by comparing our survey with other data, such as the authoritative survey data in Investigation Report on China’s migrant workers published in April 2006 by the State Council Research Office Task Force, the data in China Statistical Yearbook, China Labor Statistics Yearbook, and our another survey data in 2005, we will analyze the change of the survival status of migrant workers,
Received date: 20-Aug-2007. * Corresponding author. E-mail: [email protected] Copyright © 2007, Chinese Society for Sustainable Development and Research Center for Sustainable Development of Shandong Province. Electronic version published by Elsevier Limited. All rights reserved.
Jian Xinhua et al. / China Population, Resources and Environment, 2007, 17(6): 1–6
evaluate the implementation effects of ASC, and put forward some issues and policy recommendations on migrant worker problems.
1
Basic status and changes of migrant workers groups
1.1 Migrant workers’ average age increases slightly, but they are still mainly young adults In 763 samples, the average age of migrant workers is 33, including 28.8% of 16-25 years old, 12.3% of 26-30 years old, 31.4% of 31-40 years old, and 27.5% older than 41. Compared with 2004, the average age has increased by 4 years; the proportion below 30 years old has dropped by nearly 20%, while the proportion above 40 years old has increased by nearly 12%. Other survey data (such as every-year survey data from the Rural Investigation Team of the National Bureau of Statistics) also show that the average age has increased, but the young migrant workers are still the majority in recent years. According to their gender structure, the average age of female migrant workers is lower than that of men. The average age of female migrant workers is 31, with 53.8% below 30. The average age of male migrant workers is 34, with 38.5% below 30. 1.2 Educational level of migrant workers has increased, but is still low According to the educational structure, 3.3% migrant workers are illiterate/semi-literate, 16.6% possess only primary educational level, 59.6% possess junior middle educational level, 18.8% have high school/secondary educational background, and only 0.7% have university or higher educational certificates in early 2007. In comparison with the survey data in 2004 by the Rural Investigation Team of National Bureau of Statistics, the percentage of migrant workers with junior-secondary educational level or below has decreased from 83% to 80.5%, and those with high school and higher educational level has increased from 17% to 19.5%. Although the educational level has increased, it is still low overall. In the survey, the average educational level of migrant workers is 8.7 years, but the proportion of migrant workers with the junior middle school educational background or below is still as high as 80.5%. In all answers to “the main reason of obstructing you to work outside the home,” 16.4% migrant workers believe that “educational level is too low” is one of among all the options. 1.3 Industrial sector in which migrant workers are employed expanded, but the migrant workers are still mainly concentrated in manufacturing and construction sectors The survey reveals that migrant workers are generally distributed in almost all the sectors in the national economy, but are highly limited. In the 720 samples, workers in the manufacturing and construction sectors are the major employed groups, who account for 42.1% and 36.7% of the
total samples respectively, followed by 6.4% in the social services sector, 4.4% in the wholesale and retail sector, 3.8% in the lodging catering sector, 2.2% in the mining sector, 0.8% in the transport, storage, and postal sector, and 2.4% in other sectors. Comparing the survey results with the survey data in 2004 by the Rural Investigation Team of National Bureau of Statistics, the proportion of migrant workers in the manufacturing sector and construction sector has been increasing year by year and the increase rate has also been rising yearly. For example, migrant workers in the manufacturing sector accounted for 22% of the total migrant labor force in 2002, 25.2% in 2003, 30.3% in 2004, and 42.1% in early 2007; the proportion in the construction industry was 16.6% in 2002, 16.8% in 2003, and 22.9% in 2004, which reached 36.7% in early 2007. 1.4 Household wage income of migrant workers has been raised and the economic situation has been improved, but most informants think that their economic statuses are not high yet The survey shows that the migrant workers’ average household annual income is 18 588 yuan RMB, while the national average per capita income is 4408 yuan RMB in 2006. Of the total income, the wage income is 3314 yuan RMB, and the net income from agriculture is 1094 yuan RMB. This indicates that wage income contributes to 76.7% of the total household income. Compared with that of 2004, the household wage income has grown rapidly. At the same time, its proportion in the total income has risen and become the most important source for household income growth. 68.2% of migrant-worker families’ economic statuses are in the middle and above when compared with that of local rural residents. However, 65.7% of migrant workers think that their families’ economic statuses are at the middle level and below in their work place although their economic statuses have been improved. The situation shows that China’s urban-rural income gap remains large. 1.5 Eastern region is still the main region absorbing migrant workers while the number of workers in the central region has increased. However, the proportion of inter-provincial and trans-regional migrant workers has decreased Our investigation shows that the central and western regions are still the main homes of migrant worker outflows, while the eastern region is still the main destination. About 71.4% of migrant workers enter the central and eastern regions in 2006, 4.4% higher than that in 2004, among whom, 57.9% work force is in the eastern region. Although the basic regional circumstances have not been changed, there are two significant changes: firstly, the proportion of migrant workers employed in the central region increased from 14% in 2004 to 27% in 2007 while the proportion in the eastern region dropped to 12 % in 2007. Secondly, the proportions of inter-provincial and trans-regional employed migrant
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workers decreased. The proportions were 50% and 35% in 2004, respectively, and were 48.6% and 32.4% in 2007, decreasing by 1.4 and 2.6 % points, respectively.
2
Positive changes and existing problems
2.1 Migrant workers’ wages have grown greatly, but are still below the national average level From 2002 to 2004, the migrant workers’ average monthly wage increased from 659 yuan RMB to 780 yuan RMB, increasing by 18.4%. In 2007, the average monthly wage increased to 1305 yuan RMB, increasing 80.1% compared with 2004. It is clear that the wage growth has accelerated. The proportion of the low income group whose average monthly wage is below 800 yuan RMB decreased substantially in 2007. For example, the ones whose average monthly wage was 300–500 yuan RMB accounted for 2.9% in 2007, with a decrease of 14.9% compared with 2004; the ones whose average monthly income was 500–800 yuan RMB accounted for 15.6% in 2007, with a decrease of 21.4% compared with 2004. 13.1% of migrant workers earned an average monthly wage of 1000–1200 yuan RMB, 17.2% earned 1200–1500 yuan RMB as wage, and 19.2% obtained a salary of more than 1500 yuan RMB. To sum up, 49.5% workers obtained salaries more than 1000 yuan RMB. Although the migrant workers’ wage has seen a fairly substantial increase, it is still significantly lower than the national average wage. The migrant workers’ average monthly wage in 2007 was only 85.4% of the national average monthly wage in November 2005. In addition, migrant workers work 65 hours every week, considerably more than the average working hours of urban workers. If the urban workers’ hourly salary is calculated by 47.8 hours a week in 2005, the migrant workers’ hourly wage in 2007 is only 62.8% of the national average hourly wage in 2005. This shows that their relative wage level is even lower (2005 data are from China Labor Statistics Yearbook, 2006). 2.2 Problem of wage arrears has been eased, but the problem in some industries and regions remains grim In our survey, 65.4% of migrant workers have never been owed, 18.8% have been occasionally owed, and 15.8% have been often owed. The arrears per capita are 384 yuan RMB. Most migrant workers have recovered 85% of the arrears by consulting with employers. Compared with our another survey data in 2005, the proportion of migrant workers who are occasionally or frequently owed has been reduced by 13.7%, the wage arrears per capita has fallen by nearly 600 RMB yuan, and the ratio of recovery of wages has increased by 12.4%. Obviously, wage arrears have been alleviated in the past two years. According to the distribution of wage arrears among different industrial sectors and regions, the industrial structure
in terms of wages arrears remains basically unchanged, while the regional structure changes. Among the manufacturing, construction, and service sectors, which are the concentrating sectors for migrant workers’ employment, the problem in the construction sector remains the most serious, followed by the manufacturing sector. The situation in the service sector is relatively better. Since the construction sector has the most serious problem, governments have given the most emphasis on this industry, owing to which, the proportion of wage arrears has declined substantially. However, in the survey, migrant workers having frequently or occasionally owed wages in this sector still account for 44.5%, 9.7% higher than the national average level. In the service sector, migrant workers having owed wages frequently or occasionally account for 19.4%, 15.2% lower than the national average level. As a migrant workers’ concentrating area, the eastern region is the worst area in terms of wage arrears; thereby, it has always been a key area administrated by government. From the results of this survey, this distribution has changed tremendously: the western region has exceeded the eastern and has become the most serious area of the wage arrears problem. The eastern region is the area with the least problems now. In the western region, the migrant workers having frequently or occasionally owed wages account for 58.3%, 23.7% higher than the national level. The proportion is 2.9% lower than the national level in the east. There is no major change in the middle region. Its proportion is 2.3% higher than the national level. 2.3 Employment services provided by governments have been improved, but informal channel is still the main tunnel of work information for most migrant workers. This survey shows that 17.4% of migrant workers have been helped by governmental organizations in the job-searching process. 7.0% have been helped by market job introduction organizations. The proportions in 2004 are 1.9% and 12.6%. This shows that the organizing degree of employment has increased and the employment services provided by governments have been improved. However, the informal employment information channels still occupy the leading position. Up to early 2007, 75.6% of migrant workers had never used government organizations and job introduction organizations in their job searching process. 85.4% of migrant workers depended on relatives, acquaintances, fellow townsmen, and other personal relations. 82.3% of migrant workers considered friends and relatives, and other personal relations as the main channel to access work information. Only 4.2% of migrant workers obtained job information mainly through job introduction organizations and governmental organizations, and 5.8% of migrant workers obtained job information mainly through job advertisements posted in the streets. The informal channel is ba-
Jian Xinhua et al. / China Population, Resources and Environment, 2007, 17(6): 1–6
sically the main channel to access work information. Lacking help from families, friends, and having no reliance on governmental and employment agencies, still 11.6% of migrant workers claim that the greatest difficulty in finding a job lies in limited employment information and that they can turn to nobody for help in this regard. In the process of searching for jobs, migrant workers can find jobs more quickly when facilitated by relatives, acquaintances, fellow townsmen, and other personal relations than when not being facilitated by these personal ties. The survey shows that if they find a job through private relations, 81.6% of migrant workers spend less than one week, 11.7% spend less than one month, and 6.6% spend one month or more. If they do not depend on private relationships, the figures are 70.4%, 17.6%, and 12.0%, respectively. The average wage level of people getting employment information through governmental organizations, employment agencies, newspapers, job markets, and other official channels is higher than that of those through informal channels. In the survey, the average monthly wage is 1348 yuan RMB for the former and 1267 yuan RMB for the latter. There is an 81-yuan gap between them. The survey data of Rural Investigation Team, the National Bureau of Statistics also obtained similar conclusion (State Statistical Bureau, 2001-2006). However, the question is why people do not choose official organizations to raise income and living standards. The main reason lies in the services for them being out of place, irregular, and imperfect. In the survey, 6.8% of the migrant workers claim that official tunnels are very expensive, 26.6% do not trust them and fear from being deceived, 13.0% still do not know the existence of official tunnels, and 53.6% give up because they can get the introduction from personal relations and other sources. 2.4 Overtime work is still a serious problem for migrant workers. Most of them cannot rest on statutory holidays Our investigation reveals that the migrant workers’ average working time is 6.5 days a week, 10.0 hours a day in 2007, slightly less than that in March 2005, which was 6.6 days a week and 10.01 hours a day. The results are significantly higher than those of urban workers. Working overtime is becoming a normal state for migrant workers. 60.9% of migrant workers said they often worked overtime, while 54.1% thought they could not rest in holidays. Since most migrant workers work in the manufacturing and construction sectors, which belong to labor-intensive sectors, and high-risk jobs, working overtime has seriously harmed their physical and mental health. Although often working overtime, at the cost of their health and rest, several migrant workers do not get proper compensation. 40.6% of migrant workers who usually work overtime claim that they have no overtime wage and 60.1% working overtime in holidays claim that they have no overtime wage.
2.5 Although migrant workers are satisfied with their enterprises and jobs, their social satisfaction is low According to our survey, migrant workers are relatively satisfied with their current enterprises and jobs. 5.2% of the people have chosen “very satisfied”, 25.3% have chosen “satisfied”, 52.5% have chosen “normal”, 14.6 % have chosen “not satisfied”, and 2.4% have chosen “very dissatisfied” when asked for their opinions about their enterprises. 5.4% of the people have chosen “very satisfied”, 29.7% have chosen “satisfied”, 49.5% have chosen “normal”, 12.8 % have chosen “not satisfied”, and 2.6% have chosen “very dissatisfied” regarding their jobs. Compared with 2005 data, the satisfactory degree with enterprises and jobs has been enhanced. As to the social status, however, 65.7% of migrant workers believe that their families’ economic status is at the middle level or below in cities. The data are as follows: 47.6% of people claim that their social statuses are normal, 20.3% have chosen “not high, personal dignity has been injured”, and 9.6% worry that they are discriminated by urban residents. 2.6 Willingness to participate in social security systems and the actual participant rate has been improved, but there are still several constraints In comparison with 2005, the willingness to participate in social security systems and the actual participant rate have both been enhanced in 2007. 66.5% of migrant workers express their willingness to participate in social security systems, with the percentage improved by 11.5% than that of 2005. Those who actually participate in injury insurance, pension insurance, medical insurance, and unemployment insurance systems account for 26.2%, 8.0%, 13.0%, and 4.8% respectively, demonstrating an increase by 19.8%, 6.2%, 11.2%, and 4.1%, respectively, than that of 2005. This situation shows that the participating level of social security system of migrant workers is still relatively low. Their willingness to participate in social security systems and the actual participant rate need to be raised. 2.7 Although most migrant workers hope to become urban residents, there are still obstacles and difficulties in this regard It is not until migrant workers are genuinely integrated into the cities that the rural labor transfer process can be completed. If the situation of urbanization lagging behind industrialization cannot be changed, the problem of migrant workers cannot be eventually solved; most of migrant workers cannot become urban residents, and “San Nong Issues” by no means can be resolved. Judging from the current situation, although the majority of migrant workers wish to leave rural areas and become urban residents, and even as this desire is on the rise, there are obstacles and difficulties to integrate them into urban areas. Out of 757 respondents, if conditions or policies permit, 67.8% hope to
Jian Xinhua et al. / China Population, Resources and Environment, 2007, 17(6): 1–6
leave rural areas and become real urban residents, an increase of 13.3% more than 2005; only 32.2% do not want to leave rural areas. The reasons why they want to be urban residents include bridging the huge gap in incomes, living standards, public services, social security, and social status between the urban and rural areas. Our investigation reveals the main reasons why the migrant workers hope to become city residents. The top four, in sequence, are “higher income, better living standard in urban areas”, “children receiving better education”, “too heavy burden on farmers”, “lower social status of farmers”, which account for 33.7%, 21.0%, 13.9%, 10.6%, respectively, (Table 1). The main reasons why they do not want to become urban residents lie mainly in more life stress and risks in cities. In our survey, the top four reasons, sequentially, are “more pressure, not comfortable in rural areas,” “greater employment risks, being afraid of life security after unemployment”, “too high house price, disability to afford house price,” “high daily living cost in cities”, which account for 22.7%, 21.9%, 14.6%, 11.2%, respectively (Table 2). Although most migrant workers want to leave rural areas, they have not become real urban residents yet. In 694 samples, 87.0% of migrant workers believe that they have not yet become urban residents. 5.8% are not sure whether they belong to urban members. Only 7.2% of migrant workers believe that they have become urban residents. Policy factors are regarded as the main obstacle in the transition. Among those who have not become urban residents, 25.6% think it is because of policies, and only 11.3% do not want to be urban residents themselves. In addition, 63.1% of migrant workers consider that they are not qualified to be urban residents. This does not indicate that they cannot really live in cities; rather, it shows that governments make too much restrictions to obtain urban residents identity in the current management system. Migrant workers also examine themselves in accordance with the standards given by governments. Among the main requirements for migrant workers to become urban residents, the top three, in sequence, are: “owning a relatively stable job and higher income,” “acquiring city identification”, and “purchasing house in the city”, which account for 37.9%, 25.6%, and 17.7%, respectively. These qualifications are set by the existing institutional system through policies. Under the background of the existing institutional system and policies, there are indeed several difficulties for migrant workers to meet these requirements. Among the factors constraining migrant workers to become urban residents, 92.3% of migrant workers think that the most significant factors include the identification registration system, the employment system, the social security system segregating urban and rural areas, and the high house prices in cities; 6.6% of migrant workers think that the most significant factor is the rural land system.
3
New trends of migrant workers
The migrant workers’ living conditions have been effectively improved, especially their wage income has been significantly raised, arrears problem has been eased, the services provided to migrant workers by governments have been enhanced, and their actual participation rate into social security systems has also been enhanced. However, various basic elements, such as low income, low participation rate of social security systems, etc., have not been fundamentally changed. Migrant workers’ relatively strong desire to become urban residents is far from being realized. There are several reasons for this situation. The main reason is related to the result of policies and institutional factors. Other reasons include the characteristics of the current economic development stage in China, the change of regional economic development, and the complexity of solving the problem of migrant workers. The reason why the situation of migrant workers has been effectively improved within a short span of one year is mainly because the problems were stressed by the society and government. The implementation of ASC has brought obvious effects. However, the main reasons why the problem has not been fundamentally changed, especially the migrant workers’ relatively strong desire to become urban residents is still far from being realized, lie in the deficiencies of the existing policy. After all, ASC has been carried out for only one year, and several policies and measures should be further implemented. The reasons for the slow pace of migrant workers to become urban residents mainly lie in the deficiencies of the current systems, such as the household registration system, the employment system, the social security system, and the land system. Apart from institutional and policy causes, there are also several other factors for the new situation of migrant workers. As China is in the period of accelerating development of industrialization and urbanization, the manufacturing, construction, and infrastructure industrial sectors are providing most of the jobs. The proportion of migrant workers in the manufacturing and construction sectors is increasing year by year, and the rising rate also increases year after year. Thanks to the implementation of Central China Grow-up Strategy, Western Development Strategy, Revitalization Strategy of Old Industrial Bases in Northeast China, China’s economic growth is accelerating, especially in urban areas. The demand for labor has greatly increased all around the country. Since working in local areas has lower cost and faces fewer difficulties, migrant workers employed in the central region have substantially increased although the eastern region is still the main area absorbing migrant workers. Trans-regional employment has declined to some degree. Owing to the long period of enhancing labor force quality and enhancing the educational degree, it is difficult
Jian Xinhua et al. / China Population, Resources and Environment, 2007, 17(6): 1–6
Table 1
Main reasons why migrant workers want to become city residents (%)
Reasons High-income, a better life in cities Urban children can receive better education Too heavy burden on farmers Low social status of farmers Retirement wages and social security in cities More colorful spiritual and cultural life in cities City residents have decent and stable jobs Other reasons
First significance
Second significance
Third significance
Total
33.7
20.7
10.0
64.4
21.0
22.4
19.9
63.3
13.9 10.6
9.4 7.8
15.0 8.8
38.3 27.2
8.4
14.6
13.7
36.7
6.1
11.7
17.3
35.1
2.4
11.5
14.1
28.0
3.9
1.9
1.2
7.0
to complete all the tasks in a relatively short term. The situation of overtime work and no rest in statutory rest days is the result of over-supply of labor, low quality of migrant workers, imperfect employment system, disobeying of labor laws, low social status of migrant workers, and a variety of discriminations. The low degree of willingness to participate in social security systems and the low actual participant rate are also caused by various factors. From the viewpoint of migrant workers, the job insecurity, job mobility, and low income faced by them are the most important reasons why they do not want to participate in the social security system. From the enterprise perspective, majority of migrant workers are employed in private enterprises, which are reluctant to pay social insurance fees for migrant workers to cut costs and increase profits. From the local government perspective, their main concern is whether it will reduce the enterprises’ competitiveness and affect local investment environment.
4
Suggestions on solution of migrant worker problems
To further improve the situation of migrant workers, and fundamentally solve the problem of migrant workers, the following measures and recommendations are specially raised. 4.1 Implementing all the policies for migrant workers The one-year practice of ASC proves that they are correct and effective. Therefore, the key is that we should further implement the policies. According to our investigations and studies, we believe that the following specific measures should be taken: take effective measures to carry out the Labor Law, remove discriminations on migrant workers; rectify and improve the government’s employment organizations and social job-introduction organizations. The services of formal employment channels should be strength-
ened, transparent and efficient. They should become the dominant employment channels for migrant workers. Reform of social security systems should be accelerated. It can be started with establishing a mandatory, standardized social security system suitable for the migrant workers, and then a unified social security system for all people should be established. 4.2 Channels to fundamentally solve migrant worker problems To solve the problems of migrant workers gradually, the relevant policies should be further implemented, as well as innovations should be conducted in institutions and relevant inputs must be increased. Migrant workers and the “migrant worker tide” are a unique phenomenon in the process of China’s economic transformation. They will disappear eventually. They are the products of the market-oriented economic reform, economic development strategies, change of the growth mode, and economic restructuring. At the same time, they are also the result of uncompleted reforms and transition. Although migrant workers and the “migrant worker tide” are unavoidable and play some active role in this period, it is an abnormal and irrational phenomenon that social labors are divided into urban workers and migrant workers in the secondary and third industry. Mass tidal flows of migrant workers between urban and rural areas are also high-cost population movements. They produce great side-effects and cause several problems. The phenomenon of migrant workers and the “migrant worker tide” should eventually disappear. However, how to solve the problem of migrant workers thoroughly? How can the phenomenon of “migrant workers tide” eventually disappear? We believe that the fundamental way is for migrant workers to be transformed to urban residents and urban workers. It is not until the level of urbanization
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Table 2
Main reasons why migrant workers do not want to become city residents (ˁ)
Reasons More pressure, not comfortable as rural life
First
Second
Third
significance
significance
significance
22.7
10.1
11.8
44.6
21.9
14.6
7.9
44.4
14.6
14.1
15.7
44.4
11.2
21.6
24.2
57.0
8.6
10.6
10.1
29.3
5.6
6.5
7.9
20.0
3.0
14.1
12.9
30.0
1.7
5.5
8.4
15.6
10.7
3.0
1.1
14.8
Total
Greater employment risks, afraid of life security after unemployment Too high house price, cannot afford to buy houses High daily living cost in cities Unwilling to give up the right to contract land Suffering
discrimination,
and having difficulty in integrating into cities Too high education costs No city accounts, cannot enjoy the public treatment Other reasons
substantially is raised that the backward binary economy can be truly transformed into a unified modern economy. Migrant workers should be “in factories and meantime in urban areas, and out of home and meantime out of land”. This indicates that “floating” workers can become permanent urban workers and urban residents. In this case, they do not need to return to their rural original places in every Spring Festival. The discriminations against migrant workers, various problems of harming migrant workers’ interest, “migrant workers tide”, and the associated “transport tension in Spring Festival” will naturally disappear. Beside eliminating the institutional barriers and providing institutional guarantees, there is still an urgent problem that needs to be addressed in the process of transforming migrant workers to urban residents—who should bear the huge cost in the transition? China has put forward the target that industrialization and urbanization will be basically complete in 2020. According to the data provided by China Statistical Yearbook, the urbanization rate is 1.3% per year from 2001 to 2006. At this rate, China’s urbanization rate will reach about 60% in 2020. It is estimated that China’s total population will reach 1.45 billion in 2020. Therefore, the total urban population will rise to 870 million, an increase of 300 million more than that of 2006, including the assumption that 200 million are migrant workers and their children. It is estimated by the Sustainable Development Strategy Research Group of Chinese Academy of Sciences (2005) that the cost is about 25 000 yuan RMB for one peasant to be
transformed to be an urban resident. It will cost about 5 trillion yuan RMB for 200 million migrant workers and their children to be transformed to urban residents. It will cost about 300 billion yuan RMB every year if it is calculated for 14 years. Who should afford the costs? It is certain that the costs cannot be afforded directly mainly by migrant workers because of their low incomes. It is not feasible to burden the urban residents either. Our suggestion is that a proportion of the cost should be respectively afforded by the enterprises employing migrant workers and migrant workers themselves respectively, and the rest should be afforded by governments with financial resources (in 2006, the country’s financial revenue was 3.934 362 trillion yuan RMB, an increase by 769.433 billion yuan RMB more than 2005). It should be pointed out that the governments’ pay is only nominal. In fact, it is indirectly paid by migrant workers because the funds paid by governments mainly come from the value transformed from the profits and revenue created by migrant workers. If each migrant worker creates 3000 yuan RMB of profits and taxes every year, 120 million migrant workers can create 360 billion RMB yuan, which is enough to pay the social cost. Indeed, the profits and taxes created by each migrant worker are far more than 3000 yuan RMB every year. Therefore, the social cost is primarily paid by the migrant workers themselves. Foundation item: The paper is the research result of “Study on the Issues of Rural Migrant Workers in the Process of
Jian Xinhua et al. / China Population, Resources and Environment, 2007, 17(6): 1–6
Industrialization and Urbanization” (Approval number: 05&ZD056), the major projects of National Social Science Fund 2005.
State Council Research Office Task Force, 2006. Investigation Report
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SHORT COMMUNICATION
Up-to-date Investigation Report on Rural Migrant Workers in China Jian Xinhua*, Huang Kun Center for Economic Development Research, Wuhan University, Wuhan 430072, China
Abstract: One year has passed since the Advice on Solving the Problems of Rural Migrant Workers by the State Council was put into practice. The status for rural migrant workers has been improved effectively. Especially, their wages have been increased notably, the problem of default on wage payments has been alleviated, and the services offered to them by governments have been improved. However, some essential problems, such as low income and bad living conditions, have not been changed ultimately. Their strong wishes to become legal urban residents are still far from being realized. Therefore, we should carry out the current policies, make further institutional innovations, increase relevant investments, gradually eliminate institutional barricades, and fund shortage problems that prevent rural migrant workers from becoming legal urban residents, and solve the problems of rural migrant workers thoroughly. Keywords: migrant workers; becoming urban residents; up-to-date situation; investigation report
Migrant workers are a special social group under the historical conditions when industrialization, urbanization, and deagriculturalization of the rural population are not synchronous in China. (Zhu, 2005) According to the estimation by State Council Research Office Task Force (2006), there were 120 million migrant workers employed in cities in 2004. Adding these labor forces to township enterprises, the total number of rural migrant workers is about 200 million. They are the second largest labor group, only less than farmers and considerably more than formal urban workers. Although rural migrant workers have made a great contribution to cities and national economic development, they are treated unfairly. There are sorts of problems making them “vulnerable groups”. To solve the problems faced by migrant workers, the central government has issued a series of policies and set up some organizations and agencies in recent years. In March 2006, the State Council promulgated the Advice on Solving the Problems of Rural Migrant Workers by the State Council (hereinafter shortened as ASC). It is the first integrated document on the issue of migrant workers by the State Council. ASC treats the solution of the migrant workers problem as determining the success of China’s overall economic and social development and as “a
strategic task of building socialism with Chinese characteristics”. It confirms the guiding ideology and basic principles of the work of migrant workers, and puts forth the ideas, tasks, and specific measures to solve the urgent problems. Now, after a year has passed, what are the results of the implementation of ASC? What are the changes in the migrant workers’ living conditions? What are the causes for these changes? Which problems should be solved further? How to solve these problems? With these questions in mind, our research group carried a survey in cities of Wuhan, Guangzhou, Shenzhen, and Dongguan, and some rural areas in Hubei province and Henan province from February to March in 2007. In the survey, 1000 questionnaires were sent out, out of which 812 copies were returned, and 765 copies were valid. The workers in the survey were from 28 provinces, working in 19 provinces. The questionnaires include 81 issues. Our research thought is: by comparing our survey with other data, such as the authoritative survey data in Investigation Report on China’s migrant workers published in April 2006 by the State Council Research Office Task Force, the data in China Statistical Yearbook, China Labor Statistics Yearbook, and our another survey data in 2005, we will analyze the change of the survival status of migrant workers,
Received date: 20-Aug-2007. * Corresponding author. E-mail: [email protected] Copyright © 2007, Chinese Society for Sustainable Development and Research Center for Sustainable Development of Shandong Province. Electronic version published by Elsevier Limited. All rights reserved.
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evaluate the implementation effects of ASC, and put forward some issues and policy recommendations on migrant worker problems.
1
Basic status and changes of migrant workers groups
1.1 Migrant workers’ average age increases slightly, but they are still mainly young adults In 763 samples, the average age of migrant workers is 33, including 28.8% of 16-25 years old, 12.3% of 26-30 years old, 31.4% of 31-40 years old, and 27.5% older than 41. Compared with 2004, the average age has increased by 4 years; the proportion below 30 years old has dropped by nearly 20%, while the proportion above 40 years old has increased by nearly 12%. Other survey data (such as every-year survey data from the Rural Investigation Team of the National Bureau of Statistics) also show that the average age has increased, but the young migrant workers are still the majority in recent years. According to their gender structure, the average age of female migrant workers is lower than that of men. The average age of female migrant workers is 31, with 53.8% below 30. The average age of male migrant workers is 34, with 38.5% below 30. 1.2 Educational level of migrant workers has increased, but is still low According to the educational structure, 3.3% migrant workers are illiterate/semi-literate, 16.6% possess only primary educational level, 59.6% possess junior middle educational level, 18.8% have high school/secondary educational background, and only 0.7% have university or higher educational certificates in early 2007. In comparison with the survey data in 2004 by the Rural Investigation Team of National Bureau of Statistics, the percentage of migrant workers with junior-secondary educational level or below has decreased from 83% to 80.5%, and those with high school and higher educational level has increased from 17% to 19.5%. Although the educational level has increased, it is still low overall. In the survey, the average educational level of migrant workers is 8.7 years, but the proportion of migrant workers with the junior middle school educational background or below is still as high as 80.5%. In all answers to “the main reason of obstructing you to work outside the home,” 16.4% migrant workers believe that “educational level is too low” is one of among all the options. 1.3 Industrial sector in which migrant workers are employed expanded, but the migrant workers are still mainly concentrated in manufacturing and construction sectors The survey reveals that migrant workers are generally distributed in almost all the sectors in the national economy, but are highly limited. In the 720 samples, workers in the manufacturing and construction sectors are the major employed groups, who account for 42.1% and 36.7% of the
total samples respectively, followed by 6.4% in the social services sector, 4.4% in the wholesale and retail sector, 3.8% in the lodging catering sector, 2.2% in the mining sector, 0.8% in the transport, storage, and postal sector, and 2.4% in other sectors. Comparing the survey results with the survey data in 2004 by the Rural Investigation Team of National Bureau of Statistics, the proportion of migrant workers in the manufacturing sector and construction sector has been increasing year by year and the increase rate has also been rising yearly. For example, migrant workers in the manufacturing sector accounted for 22% of the total migrant labor force in 2002, 25.2% in 2003, 30.3% in 2004, and 42.1% in early 2007; the proportion in the construction industry was 16.6% in 2002, 16.8% in 2003, and 22.9% in 2004, which reached 36.7% in early 2007. 1.4 Household wage income of migrant workers has been raised and the economic situation has been improved, but most informants think that their economic statuses are not high yet The survey shows that the migrant workers’ average household annual income is 18 588 yuan RMB, while the national average per capita income is 4408 yuan RMB in 2006. Of the total income, the wage income is 3314 yuan RMB, and the net income from agriculture is 1094 yuan RMB. This indicates that wage income contributes to 76.7% of the total household income. Compared with that of 2004, the household wage income has grown rapidly. At the same time, its proportion in the total income has risen and become the most important source for household income growth. 68.2% of migrant-worker families’ economic statuses are in the middle and above when compared with that of local rural residents. However, 65.7% of migrant workers think that their families’ economic statuses are at the middle level and below in their work place although their economic statuses have been improved. The situation shows that China’s urban-rural income gap remains large. 1.5 Eastern region is still the main region absorbing migrant workers while the number of workers in the central region has increased. However, the proportion of inter-provincial and trans-regional migrant workers has decreased Our investigation shows that the central and western regions are still the main homes of migrant worker outflows, while the eastern region is still the main destination. About 71.4% of migrant workers enter the central and eastern regions in 2006, 4.4% higher than that in 2004, among whom, 57.9% work force is in the eastern region. Although the basic regional circumstances have not been changed, there are two significant changes: firstly, the proportion of migrant workers employed in the central region increased from 14% in 2004 to 27% in 2007 while the proportion in the eastern region dropped to 12 % in 2007. Secondly, the proportions of inter-provincial and trans-regional employed migrant
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workers decreased. The proportions were 50% and 35% in 2004, respectively, and were 48.6% and 32.4% in 2007, decreasing by 1.4 and 2.6 % points, respectively.
2
Positive changes and existing problems
2.1 Migrant workers’ wages have grown greatly, but are still below the national average level From 2002 to 2004, the migrant workers’ average monthly wage increased from 659 yuan RMB to 780 yuan RMB, increasing by 18.4%. In 2007, the average monthly wage increased to 1305 yuan RMB, increasing 80.1% compared with 2004. It is clear that the wage growth has accelerated. The proportion of the low income group whose average monthly wage is below 800 yuan RMB decreased substantially in 2007. For example, the ones whose average monthly wage was 300–500 yuan RMB accounted for 2.9% in 2007, with a decrease of 14.9% compared with 2004; the ones whose average monthly income was 500–800 yuan RMB accounted for 15.6% in 2007, with a decrease of 21.4% compared with 2004. 13.1% of migrant workers earned an average monthly wage of 1000–1200 yuan RMB, 17.2% earned 1200–1500 yuan RMB as wage, and 19.2% obtained a salary of more than 1500 yuan RMB. To sum up, 49.5% workers obtained salaries more than 1000 yuan RMB. Although the migrant workers’ wage has seen a fairly substantial increase, it is still significantly lower than the national average wage. The migrant workers’ average monthly wage in 2007 was only 85.4% of the national average monthly wage in November 2005. In addition, migrant workers work 65 hours every week, considerably more than the average working hours of urban workers. If the urban workers’ hourly salary is calculated by 47.8 hours a week in 2005, the migrant workers’ hourly wage in 2007 is only 62.8% of the national average hourly wage in 2005. This shows that their relative wage level is even lower (2005 data are from China Labor Statistics Yearbook, 2006). 2.2 Problem of wage arrears has been eased, but the problem in some industries and regions remains grim In our survey, 65.4% of migrant workers have never been owed, 18.8% have been occasionally owed, and 15.8% have been often owed. The arrears per capita are 384 yuan RMB. Most migrant workers have recovered 85% of the arrears by consulting with employers. Compared with our another survey data in 2005, the proportion of migrant workers who are occasionally or frequently owed has been reduced by 13.7%, the wage arrears per capita has fallen by nearly 600 RMB yuan, and the ratio of recovery of wages has increased by 12.4%. Obviously, wage arrears have been alleviated in the past two years. According to the distribution of wage arrears among different industrial sectors and regions, the industrial structure
in terms of wages arrears remains basically unchanged, while the regional structure changes. Among the manufacturing, construction, and service sectors, which are the concentrating sectors for migrant workers’ employment, the problem in the construction sector remains the most serious, followed by the manufacturing sector. The situation in the service sector is relatively better. Since the construction sector has the most serious problem, governments have given the most emphasis on this industry, owing to which, the proportion of wage arrears has declined substantially. However, in the survey, migrant workers having frequently or occasionally owed wages in this sector still account for 44.5%, 9.7% higher than the national average level. In the service sector, migrant workers having owed wages frequently or occasionally account for 19.4%, 15.2% lower than the national average level. As a migrant workers’ concentrating area, the eastern region is the worst area in terms of wage arrears; thereby, it has always been a key area administrated by government. From the results of this survey, this distribution has changed tremendously: the western region has exceeded the eastern and has become the most serious area of the wage arrears problem. The eastern region is the area with the least problems now. In the western region, the migrant workers having frequently or occasionally owed wages account for 58.3%, 23.7% higher than the national level. The proportion is 2.9% lower than the national level in the east. There is no major change in the middle region. Its proportion is 2.3% higher than the national level. 2.3 Employment services provided by governments have been improved, but informal channel is still the main tunnel of work information for most migrant workers. This survey shows that 17.4% of migrant workers have been helped by governmental organizations in the job-searching process. 7.0% have been helped by market job introduction organizations. The proportions in 2004 are 1.9% and 12.6%. This shows that the organizing degree of employment has increased and the employment services provided by governments have been improved. However, the informal employment information channels still occupy the leading position. Up to early 2007, 75.6% of migrant workers had never used government organizations and job introduction organizations in their job searching process. 85.4% of migrant workers depended on relatives, acquaintances, fellow townsmen, and other personal relations. 82.3% of migrant workers considered friends and relatives, and other personal relations as the main channel to access work information. Only 4.2% of migrant workers obtained job information mainly through job introduction organizations and governmental organizations, and 5.8% of migrant workers obtained job information mainly through job advertisements posted in the streets. The informal channel is ba-
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sically the main channel to access work information. Lacking help from families, friends, and having no reliance on governmental and employment agencies, still 11.6% of migrant workers claim that the greatest difficulty in finding a job lies in limited employment information and that they can turn to nobody for help in this regard. In the process of searching for jobs, migrant workers can find jobs more quickly when facilitated by relatives, acquaintances, fellow townsmen, and other personal relations than when not being facilitated by these personal ties. The survey shows that if they find a job through private relations, 81.6% of migrant workers spend less than one week, 11.7% spend less than one month, and 6.6% spend one month or more. If they do not depend on private relationships, the figures are 70.4%, 17.6%, and 12.0%, respectively. The average wage level of people getting employment information through governmental organizations, employment agencies, newspapers, job markets, and other official channels is higher than that of those through informal channels. In the survey, the average monthly wage is 1348 yuan RMB for the former and 1267 yuan RMB for the latter. There is an 81-yuan gap between them. The survey data of Rural Investigation Team, the National Bureau of Statistics also obtained similar conclusion (State Statistical Bureau, 2001-2006). However, the question is why people do not choose official organizations to raise income and living standards. The main reason lies in the services for them being out of place, irregular, and imperfect. In the survey, 6.8% of the migrant workers claim that official tunnels are very expensive, 26.6% do not trust them and fear from being deceived, 13.0% still do not know the existence of official tunnels, and 53.6% give up because they can get the introduction from personal relations and other sources. 2.4 Overtime work is still a serious problem for migrant workers. Most of them cannot rest on statutory holidays Our investigation reveals that the migrant workers’ average working time is 6.5 days a week, 10.0 hours a day in 2007, slightly less than that in March 2005, which was 6.6 days a week and 10.01 hours a day. The results are significantly higher than those of urban workers. Working overtime is becoming a normal state for migrant workers. 60.9% of migrant workers said they often worked overtime, while 54.1% thought they could not rest in holidays. Since most migrant workers work in the manufacturing and construction sectors, which belong to labor-intensive sectors, and high-risk jobs, working overtime has seriously harmed their physical and mental health. Although often working overtime, at the cost of their health and rest, several migrant workers do not get proper compensation. 40.6% of migrant workers who usually work overtime claim that they have no overtime wage and 60.1% working overtime in holidays claim that they have no overtime wage.
2.5 Although migrant workers are satisfied with their enterprises and jobs, their social satisfaction is low According to our survey, migrant workers are relatively satisfied with their current enterprises and jobs. 5.2% of the people have chosen “very satisfied”, 25.3% have chosen “satisfied”, 52.5% have chosen “normal”, 14.6 % have chosen “not satisfied”, and 2.4% have chosen “very dissatisfied” when asked for their opinions about their enterprises. 5.4% of the people have chosen “very satisfied”, 29.7% have chosen “satisfied”, 49.5% have chosen “normal”, 12.8 % have chosen “not satisfied”, and 2.6% have chosen “very dissatisfied” regarding their jobs. Compared with 2005 data, the satisfactory degree with enterprises and jobs has been enhanced. As to the social status, however, 65.7% of migrant workers believe that their families’ economic status is at the middle level or below in cities. The data are as follows: 47.6% of people claim that their social statuses are normal, 20.3% have chosen “not high, personal dignity has been injured”, and 9.6% worry that they are discriminated by urban residents. 2.6 Willingness to participate in social security systems and the actual participant rate has been improved, but there are still several constraints In comparison with 2005, the willingness to participate in social security systems and the actual participant rate have both been enhanced in 2007. 66.5% of migrant workers express their willingness to participate in social security systems, with the percentage improved by 11.5% than that of 2005. Those who actually participate in injury insurance, pension insurance, medical insurance, and unemployment insurance systems account for 26.2%, 8.0%, 13.0%, and 4.8% respectively, demonstrating an increase by 19.8%, 6.2%, 11.2%, and 4.1%, respectively, than that of 2005. This situation shows that the participating level of social security system of migrant workers is still relatively low. Their willingness to participate in social security systems and the actual participant rate need to be raised. 2.7 Although most migrant workers hope to become urban residents, there are still obstacles and difficulties in this regard It is not until migrant workers are genuinely integrated into the cities that the rural labor transfer process can be completed. If the situation of urbanization lagging behind industrialization cannot be changed, the problem of migrant workers cannot be eventually solved; most of migrant workers cannot become urban residents, and “San Nong Issues” by no means can be resolved. Judging from the current situation, although the majority of migrant workers wish to leave rural areas and become urban residents, and even as this desire is on the rise, there are obstacles and difficulties to integrate them into urban areas. Out of 757 respondents, if conditions or policies permit, 67.8% hope to
Jian Xinhua et al. / China Population, Resources and Environment, 2007, 17(6): 1–6
leave rural areas and become real urban residents, an increase of 13.3% more than 2005; only 32.2% do not want to leave rural areas. The reasons why they want to be urban residents include bridging the huge gap in incomes, living standards, public services, social security, and social status between the urban and rural areas. Our investigation reveals the main reasons why the migrant workers hope to become city residents. The top four, in sequence, are “higher income, better living standard in urban areas”, “children receiving better education”, “too heavy burden on farmers”, “lower social status of farmers”, which account for 33.7%, 21.0%, 13.9%, 10.6%, respectively, (Table 1). The main reasons why they do not want to become urban residents lie mainly in more life stress and risks in cities. In our survey, the top four reasons, sequentially, are “more pressure, not comfortable in rural areas,” “greater employment risks, being afraid of life security after unemployment”, “too high house price, disability to afford house price,” “high daily living cost in cities”, which account for 22.7%, 21.9%, 14.6%, 11.2%, respectively (Table 2). Although most migrant workers want to leave rural areas, they have not become real urban residents yet. In 694 samples, 87.0% of migrant workers believe that they have not yet become urban residents. 5.8% are not sure whether they belong to urban members. Only 7.2% of migrant workers believe that they have become urban residents. Policy factors are regarded as the main obstacle in the transition. Among those who have not become urban residents, 25.6% think it is because of policies, and only 11.3% do not want to be urban residents themselves. In addition, 63.1% of migrant workers consider that they are not qualified to be urban residents. This does not indicate that they cannot really live in cities; rather, it shows that governments make too much restrictions to obtain urban residents identity in the current management system. Migrant workers also examine themselves in accordance with the standards given by governments. Among the main requirements for migrant workers to become urban residents, the top three, in sequence, are: “owning a relatively stable job and higher income,” “acquiring city identification”, and “purchasing house in the city”, which account for 37.9%, 25.6%, and 17.7%, respectively. These qualifications are set by the existing institutional system through policies. Under the background of the existing institutional system and policies, there are indeed several difficulties for migrant workers to meet these requirements. Among the factors constraining migrant workers to become urban residents, 92.3% of migrant workers think that the most significant factors include the identification registration system, the employment system, the social security system segregating urban and rural areas, and the high house prices in cities; 6.6% of migrant workers think that the most significant factor is the rural land system.
3
New trends of migrant workers
The migrant workers’ living conditions have been effectively improved, especially their wage income has been significantly raised, arrears problem has been eased, the services provided to migrant workers by governments have been enhanced, and their actual participation rate into social security systems has also been enhanced. However, various basic elements, such as low income, low participation rate of social security systems, etc., have not been fundamentally changed. Migrant workers’ relatively strong desire to become urban residents is far from being realized. There are several reasons for this situation. The main reason is related to the result of policies and institutional factors. Other reasons include the characteristics of the current economic development stage in China, the change of regional economic development, and the complexity of solving the problem of migrant workers. The reason why the situation of migrant workers has been effectively improved within a short span of one year is mainly because the problems were stressed by the society and government. The implementation of ASC has brought obvious effects. However, the main reasons why the problem has not been fundamentally changed, especially the migrant workers’ relatively strong desire to become urban residents is still far from being realized, lie in the deficiencies of the existing policy. After all, ASC has been carried out for only one year, and several policies and measures should be further implemented. The reasons for the slow pace of migrant workers to become urban residents mainly lie in the deficiencies of the current systems, such as the household registration system, the employment system, the social security system, and the land system. Apart from institutional and policy causes, there are also several other factors for the new situation of migrant workers. As China is in the period of accelerating development of industrialization and urbanization, the manufacturing, construction, and infrastructure industrial sectors are providing most of the jobs. The proportion of migrant workers in the manufacturing and construction sectors is increasing year by year, and the rising rate also increases year after year. Thanks to the implementation of Central China Grow-up Strategy, Western Development Strategy, Revitalization Strategy of Old Industrial Bases in Northeast China, China’s economic growth is accelerating, especially in urban areas. The demand for labor has greatly increased all around the country. Since working in local areas has lower cost and faces fewer difficulties, migrant workers employed in the central region have substantially increased although the eastern region is still the main area absorbing migrant workers. Trans-regional employment has declined to some degree. Owing to the long period of enhancing labor force quality and enhancing the educational degree, it is difficult
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Table 1
Main reasons why migrant workers want to become city residents (%)
Reasons High-income, a better life in cities Urban children can receive better education Too heavy burden on farmers Low social status of farmers Retirement wages and social security in cities More colorful spiritual and cultural life in cities City residents have decent and stable jobs Other reasons
First significance
Second significance
Third significance
Total
33.7
20.7
10.0
64.4
21.0
22.4
19.9
63.3
13.9 10.6
9.4 7.8
15.0 8.8
38.3 27.2
8.4
14.6
13.7
36.7
6.1
11.7
17.3
35.1
2.4
11.5
14.1
28.0
3.9
1.9
1.2
7.0
to complete all the tasks in a relatively short term. The situation of overtime work and no rest in statutory rest days is the result of over-supply of labor, low quality of migrant workers, imperfect employment system, disobeying of labor laws, low social status of migrant workers, and a variety of discriminations. The low degree of willingness to participate in social security systems and the low actual participant rate are also caused by various factors. From the viewpoint of migrant workers, the job insecurity, job mobility, and low income faced by them are the most important reasons why they do not want to participate in the social security system. From the enterprise perspective, majority of migrant workers are employed in private enterprises, which are reluctant to pay social insurance fees for migrant workers to cut costs and increase profits. From the local government perspective, their main concern is whether it will reduce the enterprises’ competitiveness and affect local investment environment.
4
Suggestions on solution of migrant worker problems
To further improve the situation of migrant workers, and fundamentally solve the problem of migrant workers, the following measures and recommendations are specially raised. 4.1 Implementing all the policies for migrant workers The one-year practice of ASC proves that they are correct and effective. Therefore, the key is that we should further implement the policies. According to our investigations and studies, we believe that the following specific measures should be taken: take effective measures to carry out the Labor Law, remove discriminations on migrant workers; rectify and improve the government’s employment organizations and social job-introduction organizations. The services of formal employment channels should be strength-
ened, transparent and efficient. They should become the dominant employment channels for migrant workers. Reform of social security systems should be accelerated. It can be started with establishing a mandatory, standardized social security system suitable for the migrant workers, and then a unified social security system for all people should be established. 4.2 Channels to fundamentally solve migrant worker problems To solve the problems of migrant workers gradually, the relevant policies should be further implemented, as well as innovations should be conducted in institutions and relevant inputs must be increased. Migrant workers and the “migrant worker tide” are a unique phenomenon in the process of China’s economic transformation. They will disappear eventually. They are the products of the market-oriented economic reform, economic development strategies, change of the growth mode, and economic restructuring. At the same time, they are also the result of uncompleted reforms and transition. Although migrant workers and the “migrant worker tide” are unavoidable and play some active role in this period, it is an abnormal and irrational phenomenon that social labors are divided into urban workers and migrant workers in the secondary and third industry. Mass tidal flows of migrant workers between urban and rural areas are also high-cost population movements. They produce great side-effects and cause several problems. The phenomenon of migrant workers and the “migrant worker tide” should eventually disappear. However, how to solve the problem of migrant workers thoroughly? How can the phenomenon of “migrant workers tide” eventually disappear? We believe that the fundamental way is for migrant workers to be transformed to urban residents and urban workers. It is not until the level of urbanization
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Table 2
Main reasons why migrant workers do not want to become city residents (ˁ)
Reasons More pressure, not comfortable as rural life
First
Second
Third
significance
significance
significance
22.7
10.1
11.8
44.6
21.9
14.6
7.9
44.4
14.6
14.1
15.7
44.4
11.2
21.6
24.2
57.0
8.6
10.6
10.1
29.3
5.6
6.5
7.9
20.0
3.0
14.1
12.9
30.0
1.7
5.5
8.4
15.6
10.7
3.0
1.1
14.8
Total
Greater employment risks, afraid of life security after unemployment Too high house price, cannot afford to buy houses High daily living cost in cities Unwilling to give up the right to contract land Suffering
discrimination,
and having difficulty in integrating into cities Too high education costs No city accounts, cannot enjoy the public treatment Other reasons
substantially is raised that the backward binary economy can be truly transformed into a unified modern economy. Migrant workers should be “in factories and meantime in urban areas, and out of home and meantime out of land”. This indicates that “floating” workers can become permanent urban workers and urban residents. In this case, they do not need to return to their rural original places in every Spring Festival. The discriminations against migrant workers, various problems of harming migrant workers’ interest, “migrant workers tide”, and the associated “transport tension in Spring Festival” will naturally disappear. Beside eliminating the institutional barriers and providing institutional guarantees, there is still an urgent problem that needs to be addressed in the process of transforming migrant workers to urban residents—who should bear the huge cost in the transition? China has put forward the target that industrialization and urbanization will be basically complete in 2020. According to the data provided by China Statistical Yearbook, the urbanization rate is 1.3% per year from 2001 to 2006. At this rate, China’s urbanization rate will reach about 60% in 2020. It is estimated that China’s total population will reach 1.45 billion in 2020. Therefore, the total urban population will rise to 870 million, an increase of 300 million more than that of 2006, including the assumption that 200 million are migrant workers and their children. It is estimated by the Sustainable Development Strategy Research Group of Chinese Academy of Sciences (2005) that the cost is about 25 000 yuan RMB for one peasant to be
transformed to be an urban resident. It will cost about 5 trillion yuan RMB for 200 million migrant workers and their children to be transformed to urban residents. It will cost about 300 billion yuan RMB every year if it is calculated for 14 years. Who should afford the costs? It is certain that the costs cannot be afforded directly mainly by migrant workers because of their low incomes. It is not feasible to burden the urban residents either. Our suggestion is that a proportion of the cost should be respectively afforded by the enterprises employing migrant workers and migrant workers themselves respectively, and the rest should be afforded by governments with financial resources (in 2006, the country’s financial revenue was 3.934 362 trillion yuan RMB, an increase by 769.433 billion yuan RMB more than 2005). It should be pointed out that the governments’ pay is only nominal. In fact, it is indirectly paid by migrant workers because the funds paid by governments mainly come from the value transformed from the profits and revenue created by migrant workers. If each migrant worker creates 3000 yuan RMB of profits and taxes every year, 120 million migrant workers can create 360 billion RMB yuan, which is enough to pay the social cost. Indeed, the profits and taxes created by each migrant worker are far more than 3000 yuan RMB every year. Therefore, the social cost is primarily paid by the migrant workers themselves. Foundation item: The paper is the research result of “Study on the Issues of Rural Migrant Workers in the Process of
Jian Xinhua et al. / China Population, Resources and Environment, 2007, 17(6): 1–6
Industrialization and Urbanization” (Approval number: 05&ZD056), the major projects of National Social Science Fund 2005.
State Council Research Office Task Force, 2006. Investigation Report
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