China has 24 million people needing to find jobs next year. The central government plans to take a series of measures to promote employment, according to an official from the Ministry of Human Resources and Social Security.
Speaking at a national meeting to discuss the issue of population, resources, environment and development on December 23, Yu Faming, director of the Employment Promotion Division, Ministry of Human Resources and Social Security, noted that the international financial crisis is exacerbating China's unemployment problems, with 24 million people needing to find jobs next year, comprising 13 million new entrants to the jobs market, 8 million laid-off workers and 3 million others.
In an interview with 21st Century Business Herald, Yu said that promoting and guaranteeing employment has already been identified as a key priority for the government next year. His ministry is now leading the drafting of a policy on employment promotion.
Furthermore, the ministry and other relevant departments will announce a series of measures to promote graduate employment early next year.
Reasoned analysis on severe employment situation
Yu said that a squeeze on employment caused by the slowdown in economic growth will further increase the gap between labor supply and demand.
Many SMEs have already folded because of the international financial crisis, leading to the bulk of job losses.
"Next year over 7 million graduates need to find jobs," Yu said, "However, at present the recruitment expectations of employers are clearly falling, thus exacerbating the employment problems of graduates. What's more, business layoffs are still spreading and it's harder to provide jobs for the long-term unemployed and the disabled."
"The employment of rural labor, especially those migrant workers who have already lost their lands, will create enormous pressure," Yu added. "According to our research, in some provinces subject to significant labor migration, the number of returning migrant workers totals over 10 million."
Yu continued, "Large numbers of migrant workers will probably go back to cities to look for new employment opportunities, because they no longer own land to engage in agricultural production. An additional problem will be that many migrant workers will struggle to find employment in urban areas because they lack the skills to adapt to the requirements of industrial upgrading and lower labor needs."
Gov't actions to promote employment
Facing the current employment situation, central and local government is taking a series of actions. "We must carry out more active and effective policies and develop contingency plans to resolve employment issues, because there are many uncertainties in the economic situation next year," Yu said.
On December 22, the Ministry of Human Resources and Social Security, together with the Ministry of Finance and some other ministries, released a notice that China plans to take five measures to ease the strain of unemployment, including reducing the rate of social insurance, temporary postponement of social security payments, and subsidies for businesses to provide staff-training as an alternative to layoffs.
Yu explained, "The notice sent a signal that protecting existing jobs is an important way to stabilize the employment market. In other words, with the help of government, businesses will make a real effort to avoid layoffs."
According to 21st Century Business Herald, the government plans to promote employment in line with the following approach:
Firstly, the government will adjust fiscal policy, monetary policy, industrial policy and employment policy to stimulate the expansion of domestic demand, therefore offering more jobs. Simultaneously government will encourage the development of labor-intensive enterprises, SMEs and tertiary industry.
Secondly, the government will make every effort to help businesses ride out the international financial crisis through measures like temporarily postponing the increase in minimum wage rates and strengthening measures to regulate and control unemployment.
Thirdly, government will adjust relevant procedures to optimize the environment for new business start-ups, thereby creating new employment opportunities.
Some officials from local governments also put forward their views. Li Xin, director of Shenzhen Population, Resources and Environment Committee, said, "Adjusting the industrial structure is key to resolving employment issues, so government should make every effort to upgrade the industrial structure."
(China.org.cn by Ma Yujia, December 25, 2008)