China today published a white paper on its employment situation
and policies, announced Hu Xiaoyi, spokesman for the Ministry of
Labor and Social Security at a press conference sponsored by the
State Council Information Office in Beijing.
Comprising seven parts, the white paper focuses on the basic
employment situation and the proactive employment policy that has
been implemented. It also gives a general picture regarding how the
Chinese government has endeavored to solve employment issues for
the rural workforce, women, youth and disabled people.
As the most populous country in the world, finding solutions to
employment issues is a difficult but pressing job for China. The
Chinese government has explored and drawn on international
experiences and adapted them for use in the domestic situation,
formulating and implementing a number of proactive employment
policies, the white paper points out.
The government has done much to increase job opportunities,
expand the scope of employment, and keep the unemployment rate
within a socially tolerable range, says the paper. The full text of
the paper follows.
China's Employment Situation and
Policies
Foreword
I. Basic Employment Situation
II. Proactive Employment Policy
III. Improving the Quality of the Workforce
IV. Employment of Rural Workforce
V. Employment of Women, Youth and Disabled
People
VI. Employment Prospects for the Early Part of the
21st Century
Employment has a vital bearing on people’s livelihoods. It is
the fundamental prerequisite and basic approach for people to
improve their lives.
China has a population of nearly 1.3 billion, and is the most
populous country in the world. To solve the employment issue in
China is a strenuous, arduous and pressing task.
In view of the fundamental interests of its people, the Chinese
government recognizes the importance of the issue of employment.
Based on the Constitution of the People’s Republic of China, the
Labor Law of the People’s Republic of China, and other laws and
regulations, the Chinese government has protected the workers’
right to employment, and adopted various policies and measures to
promote employment actively and steadily meet their needs for
employment.
The Chinese government has explored and drawn on international
experiences and adapted them for use in the domestic situation,
formulating and implementing a number of proactive employment
policies Currently, China has established a market-oriented
employment mechanism; largely solved the problem of surplus
enterprise personnel arising over the years under the planned
economy; and, in the course of economic development and economic
restructuring, expanded the employment scope continuously. As a
result, the employment structure has gradually been optimized; the
avenues for employment have been steadily broadened; the forms of
employment have become more flexible and the employment situation
has been maintained basically stable.
On the principles of mutual respect, equality and mutual
benefit, the Chinese government has actively participated in
international labor-related affairs. China has ratified the
Convention on the Minimum Age for Admission to Employment, the
Convention on Prohibition and Immediate Action for the Elimination
of the Worst Forms of Child Labor, the Convention Concerning Equal
Remuneration for Men and Women Workers for Work of Equal Value, the
Employment Policy Convention, and other international labor-related
conventions. In the field of labor and employment, China has
carried out remarkably effective exchanges and cooperation with the
International Labor Organization, the United Nations Development
Program, the World Bank, the Asian Development Bank, and a number
of other international organizations and many countries.
I. Basic Employment
Situation
In China, there is a large working-age population, while the
average educational level of the people is relatively low,
resulting in a very prominent problem of unemployment. This is
primarily manifested in the co-existence of the contradiction of
the total volume of workforce supply and demand and the
contradiction of employment structure, in the simultaneous
appearance of increasing pressure on urban employment and
acceleration of the shift of surplus rural laborers to
non-agricultural sectors, and in the intertwining of the employment
problem for new entrants to the workforce and that of the
reemployment for laid-off workers.
Population and workforce
In 2003, the total population of China reached 1.292 billion
(excluding Hong Kong Special Administrative Region, Macao Special
Administrative Region and Taiwan Province). The population over the
age of 16 was 998.89 million, of which the urban population was
423.75 million and the rural population 575.14 million; the
economically active population was 760.75 million and the workforce
participation rate was 76.2 percent. Among the population over the
age of 16, the population with junior middle school education level
and above took up 61.7 percent, and that with junior college
education level and above, 6.6 percent. Among the population of
technical workers, those of the elementary grade took up 61.5
percent, those of the intermediate grade, 35 percent, and those of
the advanced grade, 3.5 percent.
Total employment
In 2003, the total urban and rural employed population reached
744.32 million (see Chart 1), of which the urban employed
population was 256.39 million, accounting for 34.4 percent (see
Chart 2), and the rural employed population was 487.93 million,
accounting for 65.6 percent. From 1990 to 2003, the employed
population increased by 96.83 million, an average increase of 7.45
million per annum.
Chart 1. Changes in the number of employees in urban and rural
areas
(Unit:
10,000 people)
Chart 2. Changes in the number of employees in urban areas
(Unit: 10,000 people)
Employment structure
As far as the employment structure is concerned, from 1990 to
2003 the proportion of those employed in tertiary industry rose
steadily from 18.5 percent to 29.3 percent, with the number of
employees reaching 218.09 million; the proportion of those employed
in secondary industry remained at around 21.6 percent, with the
number of employees reaching 160.77 million; and the proportion of
those employed in primary industry dropped from 60.1 percent to
49.1 percent, with the employees numbering 365.46 million (see
Chart 3).
Chart 3.
In terms of employment structure by urban and rural areas, from
1990 to 2003, the ratio of the employed in rural areas dropped from
73.7 percent to 65.6 percent. In terms of employment structure by
different economic sectors, from 1990 to 2003, the number of
employees in state-owned entities decreased by 34.7 million, down
to 68.76 million; the number of those employed by urban individual
and private economic entities increased by 35.96 million, to reach
42.67 million, representing 46.5 percent of the newly employed in
the urban areas in the same period.
New forms of employment mushroomed, such as jobs in
foreign-invested firms and economic entities of diverse forms,
part-time jobs, temporary jobs, seasonal jobs, work on an hourly
basis and jobs with flexible working hours, and became important
avenues for the expansion of employment.
Unemployment rate
In recent years, as the employment pressure has been
continuously increasing, the Chinese government has adopted many
measures to curb the sharp rise of urban unemployment. By the end
of 2003, the registered unemployment rate in the urban areas was
4.3 percent, and the number of registered jobless urbanites was
eight million (see Chart 4).
Chart 4. Registered urban unemployment rate, 1990-2003 (%)
In 2004, the Chinese government has plans to find employment or
reemployment for nine million people, and reemployment for five
million laid-off persons, of whom the number of those who have
difficulties finding a new job is one million. The registered
unemployment rate in the urban areas is planned to be controlled at
around 4.7 percent.
Income of urban and rural residents
As the economy develops and job opportunities increase, the
income of urban and rural residents keeps rising. From 1990 to
2003, the disposable income per capita of urban residents rose from
1,510 yuan to 8,472 yuan, an increase of 460 percent or a rise of
160 percent in real terms; and the net income per capita of rural
residents increased from 686 yuan to 2,622 yuan, an increase of 280
percent, or a rise of 77 percent in real terms (see Chart 5).
Chart 5. Income of urban and rural residents, 1990-2003
China exercises a proactive employment policy, and has
established the employment principle of "workers finding their own
jobs, employment through market regulation and employment promoted
by the government." The Chinese government has persisted in
promoting employment by way of developing the economy, adjusting
the economic structure, deepening reform, coordinating urban and
rural economic development, and improving the social security
system. It has adopted various effective measures and done
everything possible to increase job opportunities, expand the scope
of employment, and keep the unemployment rate within a socially
tolerable range.
Developing the economy, adjusting the structure
and actively creating job opportunities
— Expanding employment through developing the economy. The
Chinese government has always regarded promoting employment as a
strategic task for socio-economic development. It takes controlling
unemployment rate and increasing job opportunities one of its
principal macro control targets and incorporates it in its plan for
economic and social development. It adheres to the principle of
expanding domestic demand, exercises a proactive fiscal policy and
a stable monetary policy, maintains a steady and fairly rapid
development of the national economy, actively adjusts the economic
structure and enhances the motive power of economic growth in
driving employment.
— Expanding the capacity of employment by developing tertiary
industry. The Chinese government takes persistently the development
of the service industry as a major orientation for the expansion of
employment and encourages the development of community services,
catering, commercial and trade circulation, tourism, etc., for the
purpose of creating more job opportunities in these industries.
In 2002, the Chinese government enacted the policy to support
the increase of job opportunities by vigorously developing tertiary
industry, broadening employment avenues in the traditional service
sector and striving to develop tourism, with the emphasis on
creating posts for the public good in neighborhoods and communities
and assisting the reemployment or employment of laid-off and
unemployed persons and those who have difficulties finding
jobs.
— Encouraging the development of an economy with diverse forms
of ownership, and broadening avenues for employment. The Chinese
government has paid great attention to exploiting its advantage in
labor resources, and actively developed labor-intensive industries
and enterprises that have relative advantages and whose products
enjoy market demands, particularly private and self-employed
businesses and medium and small enterprises with big employment
capacity. These industries, businesses and enterprises have
accounted for about 80 percent of the new employment in urban
areas. In August 2002, China promulgated the "Medium and Small
Enterprises Promotion Law," which has further standardized and
pushed forward the development of medium and small enterprises.
— Developing flexible and diverse forms and increasing avenues
of employment. The Chinese government encourages laborers to seek
employment through flexible and diverse forms, and actively
develops labor-dispatch organizations and employment bases to
provide services and assistance for flexible employment. The
government has put in place a medical insurance policy for
part-time employees and temporary workers and enacted regulations
in respect of labor relations, wage payment, social insurance,
etc., to promote and protect the legitimate rights and interests of
those who obtained jobs in a flexible manner.
Improving the public employment service system, and
fostering and developing the labor market
— Establishing a market-oriented employment mechanism. The
Chinese government actively fosters and develops the labor market
and has gradually established the enterprises' status as the major
employers and the laborers' status as the major labor suppliers.
Simultaneously, it has coordinated and propelled reform in the
social security system, the residential housing system and the
household registration system. The environment for labor market
development has been noticeably improved, and the market mechanism
is now playing the fundamental role in the allocation of labor
resources.
— Developing and improving the public employment service system.
Since the late 1990s, the Chinese government has made great efforts
for scientific, standardized and modernized building of the labor
market, and established a public employment service system.
Currently, at both city and district levels in large and medium
cities and some small cities that have the necessary conditions,
comprehensive service premises with public job agencies as their
key service have been widely established.
Cities at the prefectural level and above have, by and large,
set up organizations to provide labor security work in local
communities, and improved the network of employment service
organizations at the grass-roots level. Almost a hundred large and
medium cities in the country have launched websites providing
information on the labor market, and ensured inter-connection
between computers of the city and district employment service
organizations.
In some cities, the information websites can be accessed in
local neighborhoods and communities. There are 89 large and medium
cities that provide to the public, on a seasonal basis, analyses of
information concerning supply and demand of the labor market by
different categories of jobs. This service plays a guiding role in
the promotion of the rational allocation of labor resources and the
development of occupational training.
The government also encourages and has standardized the
development of job agencies run by non-governmental entities. By
the end of 2003, there were, all told, 26,000 job agencies of
various types, of which 18,000 were public job agencies founded by
government institutions in charge of labor and social security at
various levels. The public job agencies provide employment services
to some 20 million people each year, and have found jobs for 10
million people successfully.
— Improving the unemployment insurance system. In the mid-1980s,
an unemployment insurance system was established in China to
provide unemployment relief and medicare subsidies to the
unemployed, facilitate the administration of and services for the
unemployed, and give full scope to the role of unemployment
insurance in promoting employment and reemployment.
In January 1999, the Chinese government promulgated the
Unemployment Insurance Regulations, which further improved the
unemployment insurance system. According to statistics from the
Ministry of Labor and Social Security, in 2003 the income of the
national unemployment insurance fund was 24.9 billion yuan, while
the expenditure was 20 billion yuan, with an accumulative balance
of 30.4 billion yuan. By the end of 2003, 103.73 million people
throughout the country had underwritten unemployment insurance
policies and 4.15 million people received unemployment insurance
pay by the year.
Getting Laid-off persons back into the
workforce
Against the background that the supply of labor in China has for
a long time exceeded the demand and due to continued adjustment of
the economic structure, a large number of workers have been laid
off from traditional industries. From 1998 to 2003, the
accumulative total number of persons laid off from state-owned
enterprises was 28.18 million.
In recent years, the Chinese government again has formulated a
set of policies for promoting the reemployment of laid-off persons:
vigorously creating job opportunities, improving reemployment
services, increasing financial input for reemployment,
strengthening skill training for reemployment, and actively guiding
laid-off and unemployed persons to change their attitudes toward
employment. From 1998 to 2003, the central budget put aside a total
of 73.1 billion yuan for basic subsistence and reemployment of
laid-off workers from state-owned enterprises.
In 2003, with the concerted efforts of governments at all levels
throughout the country, jobs were found for 4.4 million laid-off
persons, of whom 1.2 million were men over 50 years of age and
women over 40 years of age, who had been considered as having
difficulties finding reemployment.
— Establishing reemployment service centers. The Chinese
government has mobilized the resources of all circles to establish
reemployment service centers in state-owned enterprises that have
laid-off workers to provide basic subsistence allowances and pay
old-age and medicare insurance premiums on their behalf, and to
provide them with one job consultancy, three employment information
service offers and one vocational training opportunity free of
charge.
— Instituting the supportive policies of reducing and exempting
taxes and administrative charges, and extending small
security-backed loans. For laid-off persons who set up their own
businesses, small security-backed loans are available, and the
relevant taxes and administrative charges are exempted for three
years over these businesses. The government has established a
security fund for such loans, and provides loans at discount
interest.
— Implementing the policies of social insurance subsidies, and
tax reduction and exemption. Various service enterprises and
commercial and trading enterprises shall be provided with social
insurance subsidies by the government if they employ laid-offs from
state-owned enterprises for newly created posts.
To encourage them to recruit more of the laid-off persons, small
processing-type enterprises in service, commercial and trading
enterprises and labor employment service enterprises as well as
small enterprise entities of a processing nature in neighborhoods
and communities shall enjoy relevant tax reductions and exemptions
for three years if formerly laid-off people make up 30 percent or
more of their new recruits of the year.
— Helping those who have difficulties finding jobs through
reemployment assistance. Laid-off men over 50 years of age and
women over 40 years of age, who have difficulties finding new jobs
but have working ability and a wish to be employed, should be
regarded as major targets for employment assistance and promptly
provided with offers of posts and other kinds of help.
For posts for the public good developed with government
investment, priority shall be given to those having difficulties
finding new jobs because of their disadvantaged age. Regarding
posts for the public good developed by neighborhoods and
communities for former laid-offs from state-owned enterprises who
have difficulties finding new jobs because of their disadvantaged
age, the government will extend social insurance subsidies and post
subsidies.
— Encouraging large and medium state-owned enterprises to make
flexible arrangements for their surplus workers. Large and medium
state-owned enterprises are encouraged to make arrangements in
various ways for their surplus workers by way of separating the
principal production from the side occupations and through
restructuring the side occupations. An enterprise that has
completed restructuring and set up economic entities to absorb its
surplus workers at a certain ratio can be exempted from enterprise
income tax for three years.
— Improving employment services for laid-off and unemployed
persons. Public job centers at all levels should provide a
"one-stop" service ranging from registration of laid-off and
unemployed persons looking for jobs, to giving job consultancy,
offering jobs, and social insurance coverage, and provide gratis
job briefings and skill training.
Modern information networks should be employed to provide timely
and accurate employment information to laid-off and unemployed
persons. Wherever the conditions are right, a special office should
be set up to provide a "coordinated process" service covering
industrial and commercial registration, taxation procedures and
labor protection matters, to laid-off and unemployed persons who
have set up their own businesses.
Training for reemployment should be organized and conducted at
various levels and in diverse forms, in order to enhance the
employment qualifications of laid-off and unemployed persons. Those
who are able to set up their own businesses should be offered the
relevant training and guidance, and provided with consultancy,
follow-up assistance and other services. Through training these
people as pioneers in starting businesses, more people should be
encouraged to seek employment on their own initiative.
Improving the social security system, and
maintaining harmonious and stable labor relations
— Establishing the "three guarantees" system. In 1998, the
Chinese government established the system of "three guarantees,"
namely, guarantee of basic subsistence allowance for laid-offs from
state-owned enterprises, guarantee of unemployment insurance, and
guarantee of minimum subsistence allowance for urban residents.
Reemployment service centers have been widely established in
state-owned enterprises that have laid-off workers. Laid-off
workers may obtain funds for basic daily necessities for a maximum
of three years from such centers. After the three-year term
expires, laid-off workers and other unemployed people who have not
been reemployed or employed and who have unemployment insurance
coverage and paid the premiums in full are entitled to unemployment
insurance pay for a maximum of two years (see Chart 6).
If the average income per head in an urban residential household
of a laid-off or unemployed person is lower than the local minimum
subsistence standard, that person is entitled to the minimum
subsistence allowance for urban residents. Due to the "three
guarantees" system, the subsistence allowance, social security and
reemployment for laid-off persons are now closely connected.
Chart 6. Changes in the number of people drawing unemployment
insurance money
— Strengthening social security services. The Chinese government
has taken various measures and actively explored the possibilities
for the establishment of a social security system independent of
enterprises and public institutions, and has diversified fund
sources, a standardized security system, and socialized management
and service.
Since 1998, a system of continuation of social insurance
relations for laid-off and unemployed persons has been in place,
which helps promote the reemployment of laid-off persons and the
employment of unemployed persons. When a laid-off person leaves his
or her enterprise, the payment of his or her social insurance
premiums and personal insurance account will remain valid. When
reemployed, the worker will continue to pay the insurance premiums
as required, and the former and current terms of premium payment
should be added together.
For laid-off persons who get reemployed in a flexible form, such
as a part-time job, temporary job and flexible working-hour job, a
preliminary social insurance and labor management system suited to
their job characteristics has been established.
— Establishing a new labor relations regulatory mechanism. The
Chinese government has actively promoted the establishment of a
labor relations regulatory mechanism characterized by "autonomous
consultation by both parties and regulated by the government
according to law," and promoted the introduction of the system of
establishing labor relations through labor contracts.
The labor contract system has been implemented extensively in
various types of urban enterprises. The government encourages
enterprises to continuously strengthen the functions of the
employees' representative conference and the trade union, improve
the system of democratic participation by the employees, and
actively explore and popularize the system of conclusion of
collective contracts through consultation on an equal footing.
By the end of 2003, 635,000 collective contracts had been
concluded throughout the country, covering 1.27 million enterprises
and more than 80 million employees, of which the number of
enterprises that signed specific collective contracts concerning
salaries and wages totaled 293,000, covering 35.79 million
employees.
A consultation mechanism between three parties, namely, the
government, the trade union and the enterprise, suited to the
actual conditions of China has been launched in an all-round way
for the purpose of communication and consultation on major issues
involving labor relations.
At present, 30 provinces, autonomous regions and centrally
administered municipalities have successively established the
system of holding three-party labor coordination meetings at the
provincial level, as well as 5,062 three-party consultation
mechanisms at various other levels. At the same time, China has
also established a labor dispute mediation, arbitration and
litigation system, whereby to handle labor disputes in accordance
with the law.
— Protecting laborers' right to employment. Chinese law
stipulates that workers must not be discriminated against in the
matter of employment because of ethnic identity, race, sex or
religious belief. Chinese law strictly prohibits the employment of
people under the age of 16. The state strictly investigates and
deals with the illegal use of child laborers and the recommendation
of children for work.
The Chinese government has, by intensifying law enforcement and
supervision, urged enterprises to earnestly implement the
stipulations specified in laws and regulations concerning equal
employment, rectified all acts of discrimination in the labor
market, and banned all employment advertisements containing
discriminating content in the media.
Simultaneously, the Chinese government strives to enhance the
laborers' awareness and ability of protecting their own rights and
to create a sound public opinion environment, supports and
encourages laborers to use the law to protect their own employment
rights and interests.
The Chinese government has continuously improved the state,
industrial and local standards in respect of job safety and
hygiene. It promulgated the standards for the job safety and
hygiene administrative system in 1999, and carried out
certification work in an all-round manner. In 2003, the State
Council promulgated the "Regulations Concerning Insurance for
Work-related Injuries," which became effective as of January 1,
2004.
The Chinese government has introduced the system of paying
attention both to school diplomas and professional qualification
certificates, trying many ways to promote various kinds of
educational and training programs to improve the comprehensive
capacity of people of working age to obtain employment, to start a
business or to adapt to occupational changes.
Promoting various kinds of educational
programs
— Making primary and middle school education available to all
children. In 2003, the attendance rate of school-age children in
primary schools was 98.6 percent, and the gross enrolment rate of
junior middle schools was 92.7 percent.
There were altogether 31,900 senior middle schools and their
equivalents (including ordinary senior middle schools, vocational
senior middle schools, senior middle schools for adults, ordinary
polytechnic schools, polytechnic schools for adults, and technical
schools), with an enrolment of 32.41 million students and a gross
enrolment rate of 43.8 percent. Among these, there were 14,800
schools of secondary vocational education (including vocational
senior middle schools, ordinary polytechnic schools, polytechnic
schools for adults, and technical schools), with 12.54 million
students altogether.
— Developing higher education and adult education. In 2003,
there were 19 million students in institutions of higher learning,
with the gross enrolment rate reaching 17 percent, and the number
of people having finished studies at various kinds of non-degree
adult courses offered by schools of different types throughout the
country totaled 74.36 million. At present, 58.44 million people are
attending training classes of every description. Of these, the
vocational technical schools trained 72.42 million people
throughout the year. In 2003, there were 70,000 non-governmental
schools of different types and at various levels, with the total
number of students reaching 14.16 million.
Establishing a vocational training
system
Vocational training in China includes pre-employment training,
training for people transferred to new occupations, apprentice
training and on-the-job training, covering elementary,
intermediary, and advanced vocational qualification training for
technicians and other types of training to help people adapt to
different job requirements.
By developing higher vocational institutions, advanced technical
schools, secondary polytechnic schools, technical schools,
employment training centers, non-governmental vocational training
institutions and enterprises employees' training centers, the state
endeavors to develop an all-round and multi-level national system
of vocational education and training and strengthen training for
the new urban workforce, laid-off workers, rural migrant workers
and on-the-job employees.
Technical schools are comprehensive vocational training bases
mainly engaged in training skilled workers, while offering
different types of long- or short-term training programs.
Employment training centers are bases for training new workforce
and laid-off people, mainly offering teaching in practical skills
and helping the trainees to adapt to different job
requirements.
By the end of 2003, there were altogether 3,167 technical
schools in China (including 274 on the advanced level), with a
total of 1.91 million students at school, and these schools also
offered different types of training to 2.2 million people from
various social sectors. There were 3,465 governmental employment
training centers and 17,350 non-governmental training institutions
throughout the country in 2003, offering training to 10.71 million
people throughout the year.
— Strengthening pre-employment training. China has fully adopted
the workforce preparation system, and widely established and
implemented the system of training for new workforce before
employment. Thus, a vocational training network covering both urban
and rural areas has been put in place, making it possible for most
of the new urban workers to receive work preparation training, and
for new rural laborers, especially non-agricultural laborers and
rural migrant workers in towns and cities gradually to be included
in the work preparation training program. In 2003, some 1.26
million urban junior and senior middle school graduates who were
unable to enter schools for further studies received such
training.
— Strengthening labor skill training. In 2002, the state carried
out a widespread skill-enhancement action by implementing a Plan
for Strengthening Vocational Training to Improve Employment
Qualifications and a National Project for Training Highly Skilled
Personnel. Meanwhile, a program for training 500,000 new
technicians in three years was also launched. All these were aimed
at cultivating rapidly a large number of skilled workers,
especially workers with advanced skills, so as to improve the
employment qualifications, work competence and job-switching
capacity of the workforce as a whole.
In this process, emphasis was laid on training in new
techniques, materials, technology and equipment to meet the urgent
needs of enterprises for people with specialized skills and
techniques, multi-skilled talents, and people with both the needed
knowledge and skills for the development of new and high
technology. Of all the enterprise employees in China, 34 million
received job-related skill training in 2003.
— Strengthening reemployment training. The Chinese government
has made reemployment training a regular system to help laid-off
workers to find new jobs. From 1998 to 2000, the government carried
out the Three-Year Plan for Training 10 Million Laid-off Workers
for Reemployment.
In these three years, 13 million laid-offs received training, of
whom 65 percent found new jobs. On the basis of summarizing the
experience gained in the first phase, the second phase of the plan
was then implemented. From 2001 to 2003, some 15.3 million laid-off
workers attended reemployment training programs offered in various
flexible ways.
Since 1998, training in starting up businesses has been launched
in 30 cities throughout the country. This is aimed at substantially
enhancing the ability of laid-off workers to engage in individual
and private sectors of the economy or start small businesses by
means of training and guidance, policy consultation and follow-up
service.
Vocational training institutions run by the trade union
organizations at different levels have run training courses for 3.6
million laid-off workers. In 2003, some 280,000 people received
training in starting their own businesses, about 140,000 of whom
have successfully started their own businesses or become
self-employed.
— Developing long-distance training. The Chinese government is
vigorously promoting long-distance training programs by means of
information network and satellite data transmission technology. The
government has expedited the formulation and implementation of an
overall plan for long-distance vocational training, with a view to
steadily bringing into shape a socialized and open training
network.
Implementing the vocational qualification certificate system
in an all-round way
Since China adopted the vocational qualification certificate
system in 1994, relevant laws and regulations as well as a work
system have been established initially for its application. In
1999, the Chinese government called upon all social sectors to
adopt the system of paying attention both to school diplomas and
vocational qualification certificates. In 2000, the framework of
the employment permission system was preliminarily set up.
At present, China has basically set up a vocational
qualification training system of five levels – from elementary-,
intermediate- and advanced-grade skilled workers to technicians and
senior technicians – that corresponds to the state vocational
qualification standards and forms an important part of a life-long
learning system for workers. Now, there are some 80,000 vocational
skill evaluation institutions and 180,000 people engaged in
vocational skill evaluation and examination in China. The average
pass rate of vocational skill examinations is 84 percent, and 45
million vocational qualification certificates have been issued.
Launching skill competitions and activities
honoring technical experts
Skill competitions in China are held at the national, provincial
and city levels. The national-level competition is held every other
year. Meanwhile, the government, trade unions and enterprises work
in close cooperation to hold vocational skill competitions within
particular trades or enterprises to enhance the vocational skills
of workers and staff members. In 2003, some 18 million workers and
staff members took part in technical training and skill
competitions throughout the country. Since 1995, 10 winners of the
"China Grand Skill Award" and 100 "National Technical Experts" have
been selected and commended by the state each year.
As people in the rural areas make up the majority of China's
population, the Chinese government has paid great attention to
employment of the rural workforce. By sticking to the road of
urbanization with Chinese characteristics that enables the big,
medium and small cities as well as small townships to develop in a
coordinated way, the government has made overall plans for the
social and economic development of both urban and rural areas,
adjusted the structure of agriculture and rural economy, expanded
the rural employment capacity, adopted many measures to help the
surplus rural workforce to transfer to the non-agricultural fields,
and gradually removed the institutional and policy obstacles to
urbanization to guide the rational and orderly flow of the rural
workforce.
Adjusting the structure of agriculture and rural
economy
The Chinese government has actively adjusted the structure of
agriculture and rural economy, made great efforts to develop
agro-industries other than traditional crop cultivation, and
expanded comprehensive agricultural development to raise the
overall returns of agriculture. The state has vigorously promoted
the industrialized management of agriculture and developed farm
produce processing, sales, storage, transportation and preservation
to extend the farm produce-related industrial chain.
It has adopted preferential policies in the areas of finance,
taxation and credit to support the rapid growth of a group of key
and leading enterprises. The state encourages innovation in
organizations serving agriculture and the cultivation of middlemen
so as to develop socialized agricultural services in an all-round
way. The Chinese government has taken the development of township
enterprises as an important way to employ the surplus rural
workforce.
After some 20 years of reform characterized by institutional
innovation, technological transformation, optimized arrangement and
industrial upgrading, the market competitiveness of these township
enterprises has been continuously improved. Today, China's township
enterprises have attained a considerable size and a considerable
economic aggregate, to become an important force for invigorating
rural economy and increasing farmers' incomes, as well as a major
venue for the placement of the surplus rural workforce.
In 2003, the actual increase in value of China's township
enterprises reached 3,668.6 billion yuan, accounting for 31.4
percent of the country's GDP. Having become a key prop of the
national economy, the township enterprises have provided jobs to
136 million surplus rural laborers, or 27.8 percent of the rural
workforce.
Guiding rural workforce to flow in a rational
and orderly way
In 2003, more than 98 million rural laborers took up jobs
outside their townships, over six times the figure of 15 million in
1990. Throughout the 1990s, the number of farmers working away from
their native homes increased rapidly at an annual average of five
million. To find jobs in places other than their native homes
became a major channel for the transfer of the rural workforce.
Since the early 1990s, the Chinese government has adopted the
policy of "treating fairly, guiding rationally, and improving
administration and service" for farmers working in cities and
strengthened guidance and service work in this regard.
The government has established effective administrative service
systems, such as the labor service cooperation system, employment
service system and key monitoring system, aimed at bringing into
full play the government's functions in information provision and
administrative service. On this basis, great efforts have been made
to strengthen the building of public employment service
organizations, to set up and improve the labor recruitment
information network, to carry out recruitment information surveys
and to issue timely analysis and announcement of the recruitment
needs of enterprises.
The government has worked out the "National Plan for Training
Rural Migrant Workers, 2003-2010" to improve vocational training
for rural workforce, and planned to provide guiding training and
vocational skill training to the 60 million prospective rural
migrant laborers in the coming seven years, so as to enhance the
overall quality of the rural migrant workers and their employment
qualifications.
Proceeding from the overall situation of the national economic
and social development, the Chinese government has taken active
measures to guide the flow of surplus rural labor for work in
cities in line with demand and in an orderly way.
Safeguarding the legal rights and interests of
rural migrant workers
The Chinese government has gradually improved the administration
of labor contracts for rural migrant workers in cities. Any work
unit that employs rural workers must sign labor contracts with them
according to law to clarify the rights and obligations of the
respective parties.
The government has reorganized the labor market, strengthened
supervision over and inspection of the employing units and
intermediaries, enhanced management in such areas as wage payment
and labor conditions, carried out a special inspection of law
enforcement regarding the protection of rural migrant workers'
rights and interests, and severely dealt with illegal job agencies
and fabrication of false employment information to deceive rural
migrant workers, thus effectively safeguarding the rural migrant
workers' legitimate rights and interests and the order of the labor
market.
Active efforts have been made to develop ways to extend social
insurance to rural migrant workers, and in the major localities
that bring in rural migrant workforce, such as Guangdong, Fujian
and Beijing, the coverage of social insurance has been extended to
include rural migrant workers, relevant policies and regulations
have been worked out and active efforts have been made to provide
social insurance to rural migrant workers in work-related injury,
medicare and old-age pension.
Making experiments in development and employment
of rural workforce
Since 1991, the Chinese government has made experiments in some
areas on the development and employment of rural workforce to
explore for specific approaches, means of implementation and
policies and measures for the development and employment of the
rural workforce in view of different natural and socio-economic
conditions.
Meanwhile, efforts have been made to set up a relevant
socialized service system, and organizational and administrative
forms corresponding to various modes of employment, and studies
have been carried out on policies, laws and regulations, as well as
macro control measures for the government to manage urban and rural
employment in a unified way and to promote the employment of rural
workforce.
At present, such experimental work, which is characterized by
unified planning for employment in both urban and rural areas,
rural migrant workers returning home to start their own businesses,
training of the rural migrant workforce, and the promotion of
western development, is being carried out in 98 counties and cities
in 26 provinces and centrally administered municipalities
nationwide.
The Chinese government has always been highly concerned about
and placed great importance on the employment of women, youth and
disabled people, providing legal guarantees for equal employment
for men and women, and actively adopting preferential policies for
protecting employment of the disabled.
Guaranteeing women's right to equal employment
The Constitution of the PRC, the Labor Law of the PRC, and the
Law of the PRC on Safeguarding Women's Rights and Interests all
contain special provisions for safeguarding women's right to
employment. The state protects women's equal right with men to
work, eliminates sexual discrimination in employment, adopts the
principle of equal pay for equal work for both sexes, and
guarantees special labor protection for women employees during
menstruation, pregnancy, confinement and nursing.
In May 2001, the Chinese government promulgated "The Program for
the Development of Chinese Women (2001-2010)," which set the goal
of promoting women's employment. With the country's sustained,
rapid economic growth, and the development of industries and trades
suitable for women's employment, the female population in
employment has continuously grown, and the fields of employment for
them have kept expanding. The female population in employment in
China's urban and rural areas increased from 291 million in 1990 to
337 million in 2003.
Today, there are 41.56 million women employees in urban units,
accounting for 38 percent of the total employees in urban units. As
the Chinese government pushes ahead with the reform of the economic
system and the readjustment of the economic structure, a number of
women workers have been laid off. To support the reemployment of
laid-off women, especially older women, governments at all levels
have actively developed and expanded trades and fields suitable for
women to work in, and have adopted more flexible forms of
employment to provide them with job opportunities according to
their needs.
Government-run public job agencies provide laid-off and
unemployed women gratis with consultancy on policy matters, job
vacancy information, vocational guidance and job referral services,
and actively carry out vocational skill training for them. From
1998 to 2003, of a total of 13.36 million laid-off and unemployed
women, 9.72 million started their own businesses or found new
jobs.
The government supports women's federations in their work of
helping women to start their own businesses or get reemployed. From
1998 to 2003, women's federations at various levels held training
sessions for 5.8 million laid-off or unemployed women, and directly
helped 2.5 million women to find new jobs. The government has
established a maternity insurance scheme, with the premiums paid
for by enterprises, instead of individual employees. This has
created a favorable environment for women to participate equally in
competition for employment.
Promoting the employment of young
people
China has a large young population. Every year, a million-strong
new workforce arises, making young people's employment an
increasingly striking problem. Of the registered unemployed people
in urban areas, around 70 percent are under the age of 35. To
reduce the employment pressure on society, and improve young
workers' skills and overall quality, the Chinese government
provides one to three years of work preparation for all junior and
senior middle school graduates who have failed to enter schools at
higher levels.
Vocational guidance is offered in various secondary vocational
schools as a required course. At the same time, with a view to
promoting full employment for graduates, much has been done to
provide them with vocational guidance, employment services and
education in starting businesses.
To solve the employment problem of graduates from institutions
of higher learning, the Chinese government has adopted measures to
promote their employment. These mainly include: in pursuance of the
reform oriented toward market guidance, government regulation,
school recommendation, and the two-way choice of students and
employers, to encourage graduates from institutions of higher
learning to go and work at grassroots levels and in areas with
tough conditions to strengthen urban communities and rural
townships; to urge enterprises and institutions, especially small
and medium enterprises and private enterprises and institutions, to
hire graduates from institutions of higher learning; to encourage
graduates from institutions of higher learning to start their own
businesses or to get employment in a flexible way, while offering
them tax breaks, small loans and training in starting businesses;
to establish and improve employment information networks for
graduates from institutions of higher learning and to do a better
job in employment guidance and services.
Meanwhile, guidance is given to institutions of higher learning
to readjust their structure of specialities and structure of talent
training according to market demand. In 2003, the government
launched the project of vocational qualification training for
graduates from higher vocational institutions, and pooled quality
resources of vocational skill training to provide training and
services for graduates from such institutions who have not yet
found jobs, thus creating the conditions for the graduates to find
employment by themselves.
In Shanghai and some other places, a youth probation program has
been implemented, and in line with the principle of "government
compensation, public assistance and voluntary participation by
enterprises," probation bases for graduates from institutions of
higher learning are established in enterprises with the necessary
conditions, and graduates who have not found jobs are organized to
improve their abilities in practice and enhance their adaptability
to their future jobs.
Helping disabled people to find
employment
There are 60 million disabled people in China, accounting for
about 5 percent of its total population. Among them 24 million are
of working age. Since the reform and opening-up started over 20
years ago, China has brought into full play the guiding role of the
government and general public in promoting the employment of
disabled people, and made great efforts to create a favorable
environment for disabled people to equally participate in social
life.
According to China's laws, the state guarantees disabled
people's right to work. The government makes overall plans for the
employment of the disabled and creates conditions for this purpose.
To guarantee disabled people's legitimate right to employment, the
government has strengthened supervision and law enforcement, so as
to find out and correct in time any employers' infringement of the
disabled people's legitimate rights and interests in violation of
the law and relevant regulations.
In line with the principle of combining group and individual
employment, China adopts preferential policies as well as
supportive and protective measures to promote the employment of
disabled people through various channels, at various levels and in
various forms.
By group employment, it means that the state and the public
arrange for the employment of groups of disabled people by running
welfare enterprises, recuperation-through-work organizations,
massage cure services, and other welfare undertakings. The
government encourages the development of welfare enterprises with
preferential policies, such as tax reduction and exemption, to
enable more disabled people to find employment.
By individual employment, it means that employing units hire a
certain number of disabled people for suitable posts in proportion
to their size of staff. Units with disabled employees fewer than
the required proportion must pay into an insurance fund for the
employment of disabled people.
The state has also adopted various preferential policies and
supporting measures to encourage self-employment by disabled people
in both urban and rural areas and, by way of granting
discount-interest, poverty-alleviation loans, helped impoverished
disabled people with the ability to work to set up their own
businesses or start projects that can increase their incomes.
Meanwhile, the government and social organizations actively
offer employment services to disabled people, providing them with
free vocational guidance, job referral and vocational training. By
the end of 2003, 4.031 million disabled people in urban areas
throughout China had found employment, among whom 1.091 million are
employed in groups, 1.236 million are employed individually and
1.704 million are self-employed. In rural areas, 16.852 million
disabled people are in employment. The employment rate of the
disabled overall is 83.9 percent.
China will enter a new era of building a moderately prosperous
society in an all-round way in the first two decades of the 21st
century. The Chinese government is clearly aware that in this
period the country will still face severe employment pressure due
to various factors, such as the huge population base, age structure
of the population, population migration, and the process of social
and economic development.
In the coming 20 years, China's population above the age of 16
will grow by 5.5 million annually on average. By the year 2020 the
total population of working age will reach 940 million. In the
period of the Tenth Five-Year Plan (2001-2005), the population of
working age is growing at the fastest rate, increasing by 13.6
million annually on average.
While the population of working age keeps increasing, there are
now 150 million rural surplus laborers who need to be transferred,
and over 11 million unemployed and laid-off persons who need to be
employed or reemployed. The contradiction between overall supply of
and demand for labor is thus sharp, and the problem of structural
unemployment, characterized by a mismatch between the quality of
the Chinese labor force and job requirements, is becoming more and
more conspicuous.
It should be noted, however, that in the early years of the 21st
century there are many favorable conditions for solving China's
employment problem: The Chinese government pays close attention to
the problem of employment, adheres to the principle of putting
people first, keeps to the concept of overall, coordinated,
sustainable development and promotes the all-round development of
society and man, thus laying an ideological basis for further
solving the problem of employment.
After many years of exploration and practice, the general policy
for solving the employment problem has been settled, with a clear
direction and matching measures, and a market-oriented employment
mechanism has taken shape, thus providing guarantees in policy and
mechanism for solving the problem of employment.
The economy keeps developing in a sustained, rapid, coordinated
and healthy way, revenue is growing rapidly, the readjustment of
the economic structure is progressing smoothly, enterprises are
gaining better economic returns and tertiary industry is developing
at a faster rate – all these will certainly contribute to
increasing job opportunities.
The implementation of the strategies for promoting the
coordinated development of different areas, such as developing the
western region, revitalizing old industrial bases in the northeast
and other regions, promoting the rise of the central area, and
encouraging faster development of the eastern area, as well as
accelerated urbanization, will bring new opportunities for solving
the problem of employment.
With the in-depth implementation and improvement of various
policies for increasing employment, the policy effects will be
further released and the environment for employment and starting
businesses will be further improved. China's accession to the WTO,
the continuous growth of foreign trade, and closer ties between the
Chinese economy and the global economy will provide a favorable
external environment for solving the problem of employment.
The general goal
China's general goal in solving the employment problem in the
early years of the 21st century is: according to the general
requirements for building a moderately prosperous society in an
all-round way, to foster and carry out a scientific concept of
development, to meet the demand of economic and social development
for human resources development and utilization, to satisfy the
desire of the broad masses of laborers to work and to raise their
income levels, to endeavor to realize relatively full employment,
and to control the unemployment rate within limits endurable to
society.
It is necessary to increase the posts of employment in large
numbers through developing the economy and improving its structure,
and enhance laborers' ability to find employment through
strengthening education and training, so as to ensure relatively
full development and reasonable utilization of China's abundant
labor resources.
It is necessary to create a better environment for workers to
choose jobs on their own, migrate freely and set up their own
businesses, form stable policies and systems for promoting
employment, improve a labor market characterized by unity of the
urban and rural areas, opening up internally and externally, fair
competition, and standardization and orderliness, so as to ensure
the smoothness of the employment channels.
It is necessary to control the unemployment rate and average
unemployment cycle within limits the society is able to bear, and
enable all people having the ability and intention to work to enjoy
equal opportunities for employment or to be ready for
employment.
In the year 2020, the total employed population is expected to
reach 840 million, and the unemployment rate is expected to be
controlled at a level endurable to society. By then, the majority
of people will have employment opportunities; the small number of
unemployed will be guaranteed basic subsistence and prepared for
employment; and the society as a whole will be in a situation where
there is relatively full employment.
Major measures
— Maintaining the relatively rapid growth of the economy, and
putting the work of employment and reemployment in a more salient
position. China will adhere to the policy of expanding domestic
demand and maintain a sustained, rapid and healthy development of
the national economy, so as to provide a strong drive for expanding
employment.
When making policies for economic growth and industrial
readjustment, it is necessary to give priority to the strategic
goal of creating job opportunities and expanding employment, to
make creating more job opportunities an important goal of
development and to ensure that it is expressed positively in the
making of macro-economic policies, such as in the drafting of plans
for national economic and social development, industrial policies,
financial and taxation policies, investment policies, and banking
and currency policies, so as to attain the dual goal of achieving a
rapid and healthy economic growth and promoting full
employment.
— Promoting the readjustment of economic structure and the
improvement of employment structure in coordination, and expanding
the capacity of employment. It is necessary to strengthen
readjustment of the industrial structure, ownership structure and
enterprise structure. Greater attention will be paid to the
development of labor-intensive industries to bring into fuller play
their important role in absorbing the labor force.
It is necessary to direct the major part of future efforts for
expanded employment to tertiary industry, and, especially, to
utilize the large social demand and broad development prospects of
the service industry to give further play to its role in expanding
employment. Efforts will be made to continuously support and guide
the development of the non-public sector of the economy, further
carry out various policies and measures to encourage the
development of small and medium enterprises and the economy with
diverse forms of ownership, strengthen support to them in such
areas as investment and financing, taxation, technological service,
market development, information and consultation, and personnel
training, and encourage them to play a greater role in promoting
employment and reemployment.
While continuing to deepen the reform of state-owned
enterprises, it is necessary, through the separation of major and
subsidiary sectors and reform of the subsidiary sector, to properly
place surplus workers, and bring about a coordinated progress of
the reform of state-owned enterprises, the readjustment of economic
structure and the readjustment of employment structure.
— Adhering to coordinated economic and social development of
urban and rural areas, and making overall plans for urban and rural
employment. It is necessary to coordinate the development of large,
medium and small cities on the one hand and small townships on the
other, take the road of urbanization with Chinese characteristics,
and remove the institutional and policy obstacles to the
development of urbanization, so as to create more job opportunities
for farmers.
Efforts will be made to cancel restrictive regulations for
farmers to find jobs in cities, gradually unify the urban and rural
labor market, and strengthen guidance and management in this
respect, so as to put in place a system enabling urban and rural
laborers to enjoy equal employment opportunities.
It is necessary to protect the legitimate rights and interests
of migrant workers from rural areas according to law, and give
guidance to the stable and orderly transfer of rural surplus labor.
It is also necessary to promote the reform and readjustment of
township enterprises, make efforts in developing county economy,
and actively expand the space for employment in rural areas.
— Establishing and improving a market-oriented employment
mechanism with free choice of jobs by laborers as the salient
feature and the legal system of the government as the foundation.
It is necessary to give more play to the fundamental role of market
mechanism in the allocation of labor resources, and form, in
particular, a new employment pattern characterized by free choice
of jobs by laborers.
In view of the trend of diversification of employment demands,
it is necessary to introduce flexible and different forms of
employment according to circumstances; to improve the environment
for starting businesses, and to encourage individuals to start
their own businesses, so as to promote employment; to strengthen in
an all-round way the building of government-sponsored public
employment service organizations, improve job referral, vocational
guidance and training, and provide quality employment services.
Efforts will be made to improve the legal system, clarify the
government's responsibilities in promoting employment, and
standardize the behavior of enterprises in hiring people and the
order of the labor market, so as to guarantee laborers' equal right
to employment. In addition, efforts will be made to speed up
development of the labor market and to establish an employment
mechanism with laborers' free choice of jobs as the salient
feature, market regulation as the foundation, and government
promotion as the driving force.
— Raising the level of education, strengthening vocational
training, and tailoring the level of human resources quality
improvement to the needs of economic development. It is necessary
to fully utilize various education resources, strengthen the
improvement of human resources quality, direct major efforts to the
promotion of quality-oriented education, stress cultivation of
practical abilities, and make efforts in improving education
quality, so as to train millions of high-caliber workers, thousands
of special talents and a large number of outstanding innovative
talents for the socialist modernization drive.
In line with market demand and the demand for enhancing
laborers' quality, it is necessary to strengthen elementary
education, actively develop higher education, vigorously promote
vocational education, adult education and other forms of continuing
education, so as to gradually establish a socialized life-long
training and education system.
In line with the higher and higher requirements of economic
development and sci-tech progress for laborers' knowledge level and
work skills, it is necessary to further readjust the structure of
vocational education, increase input, construct a modern vocational
education system, and vigorously strengthen training of skilled
workers, especially high-level skilled workers and technicians. In
view of the demand for the readjustment of rural economic structure
and the transfer of rural surplus labor, attention will be paid to
elementary education and skill training for farmers.
It is necessary to introduce in an all-round way the work
preparation system and employment accession system, and achieve the
dual goal of improving young laborers' ability for employment and
regulating the supply of labor force. Moreover, it is necessary to
establish and improve the vocational qualification certificate
system, vigorously introduce the system of paying attention both to
diplomas and vocational qualification certificates, introduce the
vocational qualification certificate system in all technological
professions and jobs throughout the society, and establish a close
link between school education and social employment.
— Making rational arrangement in social security and employment,
and providing basic subsistence guarantee and employment assistance
for the underprivileged group. It is necessary to guarantee the
basic subsistence of the underprivileged by continuously improving
the unemployment insurance system and urban residents' minimum
subsistence guarantee system. Continued efforts will be made to
provide employment aid, develop jobs suitable for the
underprivileged group, especially welfare jobs, and help them to
get reemployment through preferential policies to encourage
enterprises to hire underprivileged persons and provide them with
free employment services.
— Raising the level of opening-up, and giving play to China's
advantage in labor resources. It is necessary to vigorously
organize labor-intensive production and processing of superior
agricultural products. While steadily increasing export of
industrial products with high technological content and high added
value, efforts will be made to improve the export competitiveness
of labor-intensive products and increase their market share, so as
to maintain and increase domestic employment. It is necessary to
rationally guide foreign businesses to invest into labor-intensive
products or industries at once labor intensive and capital
intensive, so as to increase as many jobs as possible. It is also
necessary to actively implement the strategy of "going global" and
open up the international labor market.
(China.org.cn April 26, 2004)
