China’s Employment Policies and Strategies DI Yan Research Fellow Chinese Academy of Labour and Social Security, Ministry of Labour and Social Security, P.R.China

Contents Basic Employment Situation Proactive Employment Policy Challenge to Employment in China Employment Strategies in the Future

1 Basic Employment Situation In 2005 (1) GDP reached 18.2321 trillion Yuan (2.23 trillion USD), with an increase of 9.9 % than in 2004 (2) Total population reached 1.30756 billion (3) Total employed population reached 758.25 million (4) Annual growth of the new workforce reaches 10 million (5) Over 150 million migrating work force from rural areas (6) Proportion of those employed in tertiary industry was 31.4 %, in secondary industry was 23.8 %, and in primary industry was 44.8% (7) Registered unemployment rate in urban areas was 4.2 %

2 Proactive Employment Policy Has enacted Constitution of the People's Republic of China, Labor Law of the People's Republic of China 2.1 Macroeconomic Policies (1) expanding domestic demand (2) stable fiscal and monetary policy (3) adjusts the economic structure (4) enhances the motive power of economic growth in driving employment (5) develops individual and private economy and tertiary industry

2 Proactive Employment Policy 2.2 Fiscal, Taxation, and Financial Policies (1) favorable taxation policy (2) small loans (3) interest subsidies (4) social insurance subsidies (5) post subsidies 2.3 Developing non-profit Public Posts Invested in the development of public posts, to help the vulnerable people to get their jobs

2 Proactive Employment Policy 2.4 Social Security Policy (1) an independent social security system (2) an unemployment insurance system (3) a system of "three guarantees" 2.5 Improving the Public Employment Service System (1) free employment service for the job seekers (2) a "one-stop" service for laid-offs and the unemployed

2 Proactive Employment Policy 2.6 National Vocational Training System (1) pay attention to both school diplomas and vocational qualification certificates (2)set up an Employment Permission System (3)set up a vocational qualification training system with five levels 2.7 Unemployment Monitoring Policy “Separation methods”

3 Challenge to Employment in China Current employment pressure mainly from three areas: First, the over supply of labor and the irrational structure of employment coexist; Secondly, the pressure of urban employment and the transfer of surplus rural labors to urban speed simultaneously; Thirdly, the demand of jobs by new-growth labors and the re-employment of laid-off workers interlace.

3 Challenge to Employment in China From now on several years, rigorous employment situation mainly be seen as follows: (1) supply in the total amount of labor force will be not to decrease, (2) the remains problem of employment will need to be resolved, (3) the new employment contradictions gradually emerge, (4) the situation that laborers’ competence does not adapt to job-post requirements need to be changed.

4 Employment Strategies in the Future Employment goal during 11th Five-year Planning period: (1) an increase of 45 million new jobs in urban areas, (2) a transfer of 45 million agricultural labor forces, (3) registered urban unemployment rate should be restricted to 5 percent.

4 Employment Strategies in the Future Chinese government will focus on strengthening the followings: (1) carry out the implementation of proactive employment policy (2) make great efforts to realize the favorable interaction between promoting economy development and extending employment scale (3) strengthen the transfer and employment of rural surplus labors (4) vigorously improve the quality of the laborers

Thanks for attention!