By LI ZI

　　Employment affects the well-being of every Chinese citizen and it is necessary to develop a new mindset when looking at this far-reaching issue. According to a taskforce for new-type industrialization measures of the Development Research Center under the State Council, many measures can be employed to solve the employment problems through pushing forward human-based industrialization.

　　Grim Employment Situation

　　The registered unemployment rate in China’s urban areas is continuously on the rise. It was 2.3 percent in 1992, and then went up to 2.9 percent in 1995, 3.2 percent in 1999, 3.6 percent in 2001 and 4 percent in 2002. The rate is very likely to reach 4.5 percent this year, with the total jobless people exceeding 7 million.

　　The number of laid-off workers increases, while the employment rate decreases every year. Laid-off and unemployed workers increased from up to 1.8 million in 1993 to 10 million in 2000. By the end of 2002, laid-off workers from state-owned enterprises who failed to find new jobs totaled 4.1 million, and the number of laid-off workers from non-state-owned enterprises was 2 million. By the end of June this year, laid-off workers from state-owned enterprises alone stood at 4.64 million. To make things worse, the re-employment rate in past several years dropped, which averaged 50 percent in 1998, 42 percent in 1999, 35 percent in 2000 and 31 percent in 2001.

　　Even so, there are still a large amount of redundant people in enterprises. More than one-third of the current staff in state-owned enterprises and public institutions are expected to be downsized with the advancement of restructuring in the next few years, which is estimated at about 25 million. According to a recent survey conducted by the Ministry of Labor and Social Security in 31 provinces, municipalities and autonomous regions and Xinjiang Production and Construction Corps, a total of 4 million workers from exhausted mines need to find new jobs.

　　Rural areas also have a large number of surplus laborers. In 2001, the figure was 150 million, accounting for nearly one-third of total rural labor forces.

　　The increasing difficulties for graduates from universities and colleges to find jobs are of public concern at the moment. Of the 2.12 million graduates this year, it is hard for many from some universities and colleges and in certain majors, to find ideal jobs after graduation.

　　Regardless of the needs of the 150 million rural redundant labor force, more than 20 million new job opportunities in urban areas are needed every year. In the past five years, only 8.35 million jobs in urban areas are created annually, making the present employment situation and that in the years to come extremely serious.

　　Human-Based Industrialization Path

　　Two key points are important in solving employment problems: creating more employment posts and making more people employed. Industrialization is a basic measure to create more posts and human-based industrialization is the key in making more people gain employment opportunities.

　　Human-based industrialization means to push industrialization on the basis of meeting the demands of as many people as possible. It has the following five features: First, as many employment posts as possible are created for people to participate in the process of industrialization; second, as many people as possible have the choice to participate in the process of industrialization; third, as many people as possible have the capacity to participate in the process of industrialization; fourth, as many people as possible have the aspiration and momentum in participation in the process of industrialization; and fifth, as many people as possible can enjoy the achievements brought about by industrialization. The five features, interrelated with each other, put the interests of the masses in the center from different angles.

　　Creating new employment posts is the prime prerequisite of solving employment problems. All solutions, including providing employment supports, fostering the labor market, raising the quality of labor forces, exploring new employment systems and changing the outdated ideas of employment, will go nowhere without new employment posts created by industrialization. Many measures can be used, such as supporting small and medium-sized enterprises and private enterprises, developing tertiary industry, non-traditional sectors and labor-intensive sectors. Although urbanization can also improve the employment situation, it depends on and is only the result of industrialization. Without the progress of industrialization, urbanization can only produce more urban jobless.

　　During the process of industrialization, the interests of the masses should be given top priority. The focus of the process is to raise living standards. On this basis, enough attention can be paid to transfer of labor forces and urbanization, labors’right to work can be fully respected, and labor-intensive industries and education can be greatly developed to facilitate employment. More importantly, the mainstay of the Chinese population, farmers, will be allowed to share the fruits of industrialization and give the process a strong push.

　　Main Solutions

　　Increasing as many employment posts as possible

　　An industrialization and economic development strategy that can help create employment posts and large employment should be drawn up. A macro-economic policy that is favorable to increase employment should be adopted to maintain China’s growth. The net increase of employment posts should be used as an indicator to examine the achievements of local governments.

　　Measures should be taken to develop labor-intensive industries that can create enormous employment opportunities, for example, the tertiary industry (especially commerce and trade, catering, community service and tourism sectors) and light industry.

　　Efforts should be made to encourage enterprises that feature a large amount of employment opportunities, such as small and medium enterprises, especially private ones, individual businesses, share-holding enterprises and foreign-funded labor-intensive enterprises.

　　Areas that can absorb relatively big labor forces should be developed, such as all kinds of cities, city belts and industry corridors.

　　Public projects should be increased appropriately, such as projects for infrastructure construction, environmental protection and land improvement. Projects to harness major rivers should be carried out in a large scale to employ local redundant labor forces.

　　Creating employment chances for as many people as possible

　　Labor markets based on fair competition should be initiated and improved. Measures should be taken to reform market accession, household register system, and labor employment systems and to eliminate the differences in social welfare between rural and urban areas. Residents, in rural and urban areas, can vie, on an equal footing, for all kinds of employment chances to promote the transfer of labor forces among different trades, enterprises and areas and increase the employment choices.

　　Services to increase employment should be strengthened and the re-employment service system should be improved. A large number of employment agencies at multiple levels should be established and efforts should be made to regulate relevant intermediary services and boost enterprises in this field. Service measures should be updated to establish a nationwide information-sharing network to collect and publicize employment information, to which people from all over the country can have access with no barrier. Meanwhile, legal construction concerning the labor market should be strengthened.

　　Employment aid measures, including increasing re-employment funds, tax reduction and exemption, small amount loans and social insurance subsidies, should be taken to provide support for laid-off workers and rural redundant labor forces.

　　Flexible employment patterns should be encouraged, such as self-employment. Laid-off workers should be guided to try various employment patterns including part-time jobs, temporary jobs, seasonal jobs, while enjoying the same pay and social welfare as people with fixed jobs. These employment patterns should be incorporated in government-sponsored employment service packages.

　　Making as many people as possible have the capacity of employment

　　Great efforts should be made to promote various forms of adult education. A society of good learning atmosphere should be cultivated to encourage life long education.

　　Various forms of career training and re-employment training should be launched on a large scale, to increase the skills and adaptability to different jobs of laid-off workers and rural redundant laborers. Special funds for career training and employment training assistance should be established to offer free training for poor laid-off workers and rural redundant laborers in difficulties.

　　Training should be offered to people of labor age to increase their knowledge and skill of how to start up businesses. Universities, colleges and training institutions should commence special courses for this purpose.

　　Making as many people as possible have the aspiration and momentum in employment

　　Efforts should be made to strengthen education on employment-related issues, fostering public awareness of competition and a pioneering spirit. Laid-off workers should be aware of the present situation and engage in market competition. They should change their outdated way of thinking that working for governmental organs, institutions and state-owned enterprises means being employed while working for private businesses and engaging in part-time jobs, temporary jobs and seasonal jobs means being unemployed. Rural redundant laborers should actively work in new fields.

　　Common people should be encouraged to work to reduce voluntary unemployment. Relief funds and welfare should be distributed on the basis that the beneficiaries can make money and support themselves with the funds. Social welfare from government should be turnedsintosthe impetus of employment.