Chinese Premier Wen Jiabao said Monday China will improve its vocational training system to promote employment and economic development.

"Vocational training is a major way to enhance the skills of the labor force, as well as an effective measure to promote and stabilize employment," a statement released after an executive meeting of the State Council, China's Cabinet, presided over by Premier Wen said.

"China's employment market is steady at present, but it still faces serious structural problems and the labor supply still outweighs demand," the statement said.

Wen asked local authorities to diversify training in both urban and rural areas while working to increase the employment rate.

Enterprises were encouraged to initiate training programs to improve the skills of their employees.

The government will work to ensure the quality of training and make the training targeted to meet the requirements of specific jobs, the statement said.

Meanwhile, the government will increase capital investment in vocational training while boosting supervision of funds dispersed.