Renowned labor expert Cai Fang has warned that China may see more urban job losses in 2009 after millions of migrant workers became unemployed last year.

Cai, head of the Chinese Academy of Social Sciences' Population and Labor Economy Institute, made the warning in the December issue of Caijing magazine.

Migrant workers have been among the first to bear the brunt of the current financial crisis, with government statistics showing 10 million of China's 130 million migrant workers returning jobless to rural hometowns last year.

This was after exporters were forced to shut down or suspend production to avoid losses as a result of decreased overseas demand.

Cai said that, as a result, the income of rural and urban residents could grow at a slower pace. The deceleration of income growth would definitely hurt consumption, he added.

Weak domestic consumption would further slow the country's economic growth. In addition, the other two growth engines, export and investment, were also not doing well, Cai said.

This could lead to more job losses across the country, he added.

"In the end, there could be a noted increase in the unemployment rate for 2009."

The government has already taken action to promote exports, investment and consumption in order to boost the economy.

Measures so far include a four-trillion-yuan stimulus package, raising export rebates to benefit exporters and tapping the vast rural market with more government subsidies for farmers to buy home appliances, among others.

(Xinhua News Agency January 4, 2009)