Some foreign companies in the IT and electronic appliance industries laid off employees in China recently, sparking controversy.

However, blaming the companies may not be justified given the global recession, the fast changing landscape and fierce competition in those industries.

Companies have the right to lay off employees legally. If they try to maintain their staff, when they actually cannot make ends meet, their bankruptcy may cause more serious damage to the job market and society.

However, labor authorities should monitor the changes in the job market and decide if those changes are healthy.

The global financial crisis in 2008 made about 20 million migrant workers lose their jobs in China and caused a serious labor shortage later. So the job market is not only limited to white-collar employees but also includes migrant workers.

Past experience also indicates that the performance of the job market is directly related to social stability.

So labor authorities should provide accurate jobless statistics to decision-makers in charge of making more flexible and responsive employment policies, in case the jobless population rises sharply again.

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