Ministry of Human Resources and Social Security

(August 4, 2009)

In the first half of 2009, the human resources and social security departments across China have followed in real earnest the important decisions by the CPC Central Committee and the State Council about actively addressing the international financial crisis and improving people's livelihood. Centering on the objective of "Ensuring growth, people's livelihood and stability" and the focus of promoting employment, strenuous efforts have been made to build up social security system with progress made on all fronts.

I. Employment and Reemployment

i. The overall employment situation has remained stable. From January to June, the increased urban employment totaled 5.69 million, representing 63% of the 9 million whole year target; laid-off workers reemployment totaled 2.71 million, representing 54% of the 5 million whole year target; 790,000 hard to place people have got reemployed, representing 79% of the 1 million whole year target; the registered urban unemployment rate stood at 4.3%, on a par with that for the first season. By July 1st, 4.15 million university graduates have found jobs with an employment rate of 68%, similar to that in last year. Job cut in enterprises has slowed down and there is net growth in June.

ii. Steady progress has been made for the employment of university graduates and rural migrant workers. Putting the employment of university graduates atop the employment work agenda, the State Council convened national teleconference to make specific arrangements. Along with relevant departments, MOHRSS has put forward 15 supportive documents which have strengthened employment service, employment internship programs and employment assistance for university graduates, and have expanded employment channels by encouraging them to seek for jobs at urban and rural grassroots, in small-and medium-sized enterprises and non-public enterprises, in scientific research projects, or by business startup and joining the army. Integrated approach is adopted to implement the policy of encouraging university graduates to work at grassroots level in rural areas. More efforts would go to "three supports and one assistance" program (support to education, agriculture, health care and assistance to poverty-alleviation) to the university graduates and it is planned to recruit 30,000 graduated for this year. Together with relevant departments, MOHRSS has carried out a series of "Spring Breeze Action" activities and has taken various measures, including strengthening public service to promote the employment of rural migrant workers. Grassroots platform has been made full use of to step up service to rural migrant workers back to their hometown.

iii. Remarkable scores have been registered for reemployment assistance and private enterprise recruitment campaign. MOHRSS has devoted its efforts in employment assistance to targeted groups, for example, further assisting zero-working-member families, developing public-welfare posts, implementing the job subsidy and social insurance subsidy policies, and helping those with employment difficulties to get reemployed. One-to-one employment assistance to earthquake-stricken areas has been scaled up, and the third term agreement has been signed between disaster-hit provinces and 20 provinces and cities with respective assistance target. During "2009 private enterprise recruitment week" 2.76 million pieces of vacancy information have been provided and 1.05 million job-seekers have reached employment intention with employing units.

iv. Support to business startup has been reinforced. MOHRSS has actively coordinated with Ministry of Finance and People's Bank of China to formulate policies to relax eligibility requirements for micro loan and discount government loan, increase the credit line for micro loan and loosen control of micro loan to labour-intensive, small-and medium-sized enterprises. All provinces, autonomous regions and municipalities have come up with implementation methods for promoting employment with business startup. 82 cities have pioneered in relevant work, exploring the five systems for entrepreneurship city, i.e. organization leadership, policy backup, entrepreneurship training, entrepreneurship services and work evaluation.

v. Field studies and work inspection focusing on employment have been organized. In response to the changing employment situation, a quick data collection system has been timely set up. The leaders of MOHRSS headed 8 teams to conduct targeted inspection in 16 provinces; relevant departments organized 11 groups to conduct studies on post-Spring Festival rural migrant workers employment in 4 major labour receiving provinces (Jiangsu, Zhejiang, Guangdong and Fujian) and 7 major labour sending provinces (Anhui, Guangxi, Henan, Hubei, Hunan, Jiangxi and Sichuan). With local departments' support and strong policy campaign, an enabling environment has been cultivated for employment work.

II. Social Security

i. All social insurance benefits have been paid on time and in full. For the first half of this year, 383.6 billion yuan basic pension has been issued for enterprise retirees, and the on-time and in-full payment of such basic pension has been maintained. The readjustment of enterprise retirees' basic pension has been completed and the average pension benefit now reaches 1200 yuan per month, rising by 110 yuan. By the end of June, beneficiaries under the unemployment insurance were 2.57 million with a total benefit paid reaching 12.72 billion yuan; benefits under medical insurance, work injury insurance and maternity insurance were duly delivered with 132.67 billion yuan paid from January to June, achieving higher benefit level.

ii. The social insurance system has been further improved. Review and revise of Social Insurance Law (draft) are under way. Provincial pooling of basic old-age insurance fund has been accelerated and 25 provinces currently have such system in place, 6 more compared with last year-end. Another 7 provinces are actively working out relevant plans. Old-age Insurance Method for Rural Migrant Workers and Provisional Method on Basic Old-age Insurance Portability for Urban Enterprise Employees have been further improved with corresponding procedures to be identified. Pilot of making individual account funded has been pushed forward. Pilot of expanding unemployment insurance fund expenditure scope in 7 eastern provinces and cities have been reviewed and evaluated, and pilot of dynamic monitoring of unemployment has been further regulated. Overall arrangements have been made to follow health sector reform documents and improve medical insurance scheme in line with the deepening medical and health system reform. The urban resident basic medical insurance system has been on the full swing. Breakthrough has been made in enrolling retirees of close-down and bankrupt enterprises into medical insurance scheme. The State Council decided to earmark 42.9 billion yuan to resolve this historical problem and the first portion of the capital is already in place. With the review and amendment of Regulations on Work Injury Insurance (revised), MOHRSS has actively expanded the coverage of work injury insurance with the implementation of "Ping'an Plan" (second phase) as the focus, and has mapped out plans to enable the injured workers under the old scheme covered by the new pooling fund. The Standing Committee of the State Council has considered and adopted the Guiding Opinions on New Rural Social Old-age Insurance Pilot, and the social security policy measures for land-expropriated farmers have been improved. The investment method of individual account fund has been studied and drafted, and the Trial Method of Improving Enterprise Annuity Fund Management has been revised.

iii. Expansion of social insurance coverage and contribution collection has been strengthened. By the end of June, participants in urban basic old-age insurance, basic medical insurance, unemployment insurance, work injury insurance and maternity insurance stood at 224.13 million, 336.79 million, 123.39 million, 140.74 million, 97.94 million respectively, increasing by 5.22 million, 18.57 million, -610,000, 2.87 million and 5.4 million respectively. For the first half of this year, the five social insurance funds have collected contribution worth of 616.8 billion yuan, rising by 17.6%. In light of the central government stimulus package to the financial crisis, benefits of various social insurance schemes have increased on average. The expenditure of the five social insurance funds in the first half of this year totaled 577.5 billion yuan, a growth of 19.3%.

iv. Active social insurance policies play an important role in stabilizing employment situation. MOHRSS has readjusted social insurance policies, promoted the implementation of policy measures like reducing enterprise burden and stabilizing employment posts. Most places have formulated implementation documents.