The unemployment problem began in 90's last century. First, it resulted from the restructuring of economy. In the period of planned economy, the large-scale corporation is the most common production organization. But to the market economy, the most common one is the individual or small-scale corporation. The workers from the large-scale firms cannot adapt themselves to the production form of the individual or small-scale ones. Therefore, in terms of a certain way, the large quantity of unemployment is the cost of the increase of the efficiencies of Chinese economy, or we can regard this as the cost of the change from planned economy to the market one. For the goal of the restructuring, the society should decrease the quantity of the employment to increase the efficiency.
             Second, to construct the modern corporation system, the forms of the employing should meet the need of market economics competition, changing from plan-decided to market-decided. Whether employ or not, or how many to employ is decided by the costs and the revenues caused by the workers. If the cost is larger than the revenue, which tells the enterprise that the firm is in low efficiency, the workers employed are in surplus. Then, the unemployment or the lay-off will the certainly occur.
             Third, the large amount of unemployment is caused not only by the restructuring of economy, but also the gap between the large population and the limited resources of China. The abundant labor forces produced by the agricultural economy now rush into the industrial one, but they do and certainly have to be washed out.
             The adjusting of economy structure is the process that the capital excludes the labor forces. Since 90's of last century, China has moved to the stage of large-scale economy structure adjusting. What is structure adjusting? Quoted one sentence said by the economist Hu Angang, the structure adjusting is destroying in a creative way. On one hand, the adjust...