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Tian's six-point plan to solve employment crisis
10/3/2008 10:48

The employment situation will be "very severe" this year, even though China has generated 51 million jobs in urban areas in the past five years, Labor and Social Security Minister Tian Chengping said yesterday.

Speaking on the sidelines of the First Session of the 11th National People's Congress in Beijing, Tian said about 20 million new job seekers emerged every year.

Cities and towns could only provide about 12 million jobs each year, but huge numbers of migrant workers were flowing into urban areas, the minister said.

Premier Wen Jiabao said in his government work report, delivered last Wednesday, that "providing adequate employment opportunities in China, which has the largest population in the world, is a daunting challenge."

Tian said six measures will be taken to promote employment:

1. Implementing a job-creation strategy and prioritizing job generation in the course of social and economic development.

2. Improving active employment policies.

3. Encouraging job creation through start-up businesses.

4. Improving the employment service system for job-seekers.

5. Providing occupational training to resolve structural mismatches in the labor market.

6. Establishing an unemployment early warning system, and striving to maintain stable employment.

Wen said China spent 66.6 billion yuan (US$9.3 billion) in central government subsidies over the past five years to support employment programs.

The problem of finding new jobs for former state-owed enterprise staff had been basically resolved, and the work of incorporating basic cost-of-living allowances for laid-off workers into the unemployment insurance system had been completed, the premier said.

The urban unemployment rate over the past five years was lower than 4.3 percent, but the ministry has set the 2008 target at 4.5 percent.

Meanwhile, a senior labor official said the new Labor Contract Law should be implemented fully before it is amended.

"After it came into effect in January, the law was welcomed by employees and most employers, but we also noticed different views and comments," Vice Minister of Labor and Social Security Sun Baoshu said.

The law aroused concerns that it would affect the investment environment and raise labor costs.

However, Sun said: "Such an interpretation shows an incorrect understanding or lack of understanding of the law." Sun said: "It is not right - and illegal - for companies to pursue high profits at low cost, which means at the expense of workers' rights and interests."


Xinhua