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Last updated at: (Beijing Time) Tuesday, November 12, 2002

80 Million Jobs Created in Past 13 Years, Prospects Brighter

Market demand now plays a dominant role in allocating human resources in China, and a social security framework with Chinese characteristics has taken initial shape, a leading labour official said Monday in Beijing.


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Market demand now plays a dominant role in allocating human resources in China, and a social security framework with Chinese characteristics has taken initial shape, a leading labour official said Monday in Beijing.

Speaking at a press conference held on the sidelines of the ongoing 16th Party Congress, Zhang Zuoji, minister of labour and social security, said that the country has witnessed expanded employment, great progress in re-employment and fundamental changes in its employment structure over the past 13 years.

According to Zhang, the number of people employed across the country rose to 730 million in 2001 from 650 million in 1990.

The service industry has become a major channel for surplus labourers. Its share of the employment pie increased from 18.5 per cent in 1990 to 27.7 per cent in 2001, the minister said.

The rapid development of individual and private businesses has also contributed greatly to the country's employment efforts. Statistics indicate that 30 million urban residents, representing 40 per cent of the total increase in urban employment, found jobs in the private sector from 1990 to 2001, said the minister.

Substantial progress has been made in re-employment with 17 million out of the total 26 million laid-off workers from State-owned enterprises (SOEs) having found new jobs during the period from the beginning of 1998 through June of 2002, said Zhang.

The past 13 years have been the best period for the establishment of a social security system with Chinese characteristics, he said.

Three social security schemes have been in full operation across the country, catering to the needs of laid-off workers from SOEs, the jobless and the urban poor respectively, according to Zhang.

By September 2002, the number of people shielded by unemployment insurance totalled 101 million, an increase of 36 million over 1989's figure, Zhang said.

Headway has also been made in reform of the pension insurance system, and reform of the comprehensive medical insurance system has been initiated, he said.

Meanwhile, employees' wages have increased and the legal rights and interests of the workers have been well protected, the minister said, adding that the number of public holidays was increased from 59 to 114 days per year since the mid 1990s, an improvement in the quality of people's lives.

In response to questions on the unemployment rate and on providing social security to rural people, Zhang said that the current registration system of urban unemployment does not take into account laid-off workers from SOEs or farmers seeking jobs in cities.

The country is exploring ways to make its social security system beneficial to farmers as well, he added.

China's unemployment rate is expected to be kept under 4 per cent this year, 0.5 percentage points lower than the expected figure, the minister said.

At present, around 60 million farmers are participating in some kind of social security scheme and 1.08 million have started to collect pension benefits, Zhang said.

Party General Secretary Jiang Zemin's report delivered at the opening session of the 16th Party Congress on Friday sent a clear signal to social security workers that they should forge ahead with explorations of setting up a pension system, a medical-care system and a minimum living standard payment system in rural areas where conditions are ripe, Zhang said.


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