BEIJING, March 5 (Xinhuanet) -- The Chinese government has proposed to allocate 10.9 billion yuan (1.3 billion US dollars) on reemployment work this year, 2.6 billion yuan (313 million US dollars) more than last year, said Premier Wen Jiabao in the government work report to the top legislature Saturday.

    The government plans to include for the first time workers laid off from collectively owned businesses into its reemployment program in 2005, Wen said in the government work report to the third annual session of the 10th National People's Congress that opened here Saturday.

    The program used to target only workers laid off from state firms. In 2004, it helped 5.1 million laid-off workers find new jobs, including 1.4 million people who are aged above 40 and are considered the least advantaged group on the job market.

    The Ministry of Labor and Social Security has vowed to help another 5 million laid-off workers find jobs this year.

    "We will continue to follow a proactive employment policy...conscientiously implement all policies and measures to support reemployment," said Wen, adding that local budgets will also increase reemployment allocations.

    Experts say the government's active pro-employment policy, along with the sound economic performance, has brought about the first drop in the country's urban unemployment in 2004.

    China's registered urban jobless rate stood at 4.2 percent in 2004, down 0.1 percent from 2003.

    The Ministry of Labor and Social Security has locked the registered urban unemployment rate for 2005 within 4.6 percent, a slight fall from the original 2004 goal of 4.7 percent.

    Experts say the world's most populous nation is under heavy pressure to create enough jobs for its huge workforce that consists urban residents as well as the increasing number of surplus laborers from the rural areas.

    The country has taken active policies to promote employment since 2002. Packed with a series of preferential measures in taxesand loans, the policy encourages businesses to hire laid-off workers and others less competitive job-hunters. The measures also help the jobless to start businesses of their own, say sources with the Ministry of Labor and Social Security. Enditem