The southern boomtown Guangzhou reported 10 percent more mass labor disputes (involving more than 30 workers each) in the fourth quarter than the third quarter in 2008 and the figure was 4.4 percent more in January than in December.

The southern export-oriented city of Dongguan reported about 66,000 job cuts after the Spring Festival (on Jan. 26 this year). About 440 factories are in an "unstable" condition, with 48,000 jobs hanging in balance, according to Dongguan Stability Maintaining Office.

"The pressure might be tough in the first and second quarters this year. Mass labor disputes might rise because of possible factory bankruptcy in the future, but it's not severe enough to cause large-scale riots," said Du Ganhong, deputy director of the office.

Dongguan Mayor Li Yuquan, also an NPC deputy, said the city was setting up an early-warning system to prevent mass incidents from happening. The city government was considering proposals raised by local lawmakers on this regard, including that labors receive their wages at local banks so as to prevent deliberate payment defaults by some entrepreneurs.

There have been concerns over the grave employment situation. Economist and political advisor Li Yining said creating jobs should be the country's top priority this year.

Chen Shu, a Guangzhou-based lawyer and an NPC deputy, has suggested the country to establish funds to cope with risks that the bosses may run away while defaulting unemployment compensation.

"We should repair the house before it rains," he said, adding unemployment compensation defaults often cause mass incidents.

Premier Wen Jiabao told nearly 3,000 legislators Thursday at the NPC session that in this developing country with a population of 1.3 billion "maintaining a certain growth rate for the economy is essential for ... ensuring social stability."

Wen also said leading cadres, especially principal ones, shall handle people's letters and receive people's visits in order to resolve conflicts.

The government will address people's complaints and guide the people in expressing their concerns by "reasonable and lawful means," Wen said.

When joining fellow NPC deputies in deliberating Wen's government work report Thursday, President Hu Jintao called for more efforts to improve the wellbeing of the people especially when there are difficulties in economic development. This included increasing job opportunities, expanding the social security net and providing better education and medical care services.

"We should do our utmost to safeguard social harmony and stability," Hu said.

(Xinhua News Agency March 5, 2009)