It is widely known that any single economy has its natural unemployment rate (it is believed to be circa 5%). Despite an overpopulation of the P.R.C., there is still an excessive amount of labor force on Chinese market. Employers can select workers more thoroughly, as supply of labor exceeds demand of labor. The urban unemployment rate in China was last reported at 4.1 percent in the first quarter of 2012. As you can see, this ratio remains close to natural level of unemployment.