Employment of Return Migrants and Rural Industrialization in China----A Case Study in Hunan Province

Since the opening up and reforms of the Chinese economy in the 1970s, migrant labor from China's countryside has found employment in cities. The process has a strong impact on China’s economy and urbanization. According to official statistics, the number of migrant workers in China is 150 million, which is 11.5% of the total population . However, with the implementation of a series of national policies and the impact of the global financial crisis from 2008, many migrant workers lost their jobs in the cities and returned to their home villages. This poses great challenges as well as opportunities for the development of rural China. The research presented in this paper explores the employment status of the return migrants and the major determinants for their occupational choice. It is based on a field survey in Hunan Province, done in 2011. Comparing of the returnees’ employment status between two rural regions, we found that the rural industrialization, featuring in collective land use and industrial incentives, plays a significant role in creating employment for return migrants. Hence, rural industrialization is an important strategic choice of urbanization in China, by adjusting the rural economy and transfer of surplus workforce.