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Foreword
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
II.
Proactive Employment Policy
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.
III.
Improving the Quality of the Workforce
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.
IV. Employment of Rural
Workforce
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.
V. Employment of Women, Youth and
Disabled People
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.
VI. Employment Prospects for
the Early Part of the 21st Century
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.
Information Office of the
State Council of the People's Republic of China
April 2004,
Beijing
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