As forecast, the number of lay-off is expected to decrease this year, but the unemployed people will increase in number and the unemployment rate presents an upward trend this year.

An analysis by an official with the said ministry shows that there are the following three main reasons for increase in the unemployment rate: First, after leaving the job information center some of the laid-off workers can't find a job temporarily and become unemployed. Second, with the intensified structural adjustment, some loss-making enterprises withdraw from the market and it is impossible to place part of their workers for the time being. Third, the number of newly-increased labor is fairly large. The number of graduates will increase by 0.67 million over last year's and the number of the unemployed will increase accordingly.

In addition, the subsidies provided by the central finance to promote employment are to be allocated to local governments in time. The labor and security departments will supervise and urge relevant departments all over the country to adjust the financial expenditure structure conscientiously and increase the input of funds for reemployment; the department will also stress on solving impoverished people's problems in livelihood and production, guide the local departments to work out reemployment-aid plan for the unemployed who are at the age of 40 or 50, and strive to help over 1 million such middle-aged people reach reemployment.

It is reported that up to the end of March, there were 4 million laid-off workers from State-owned enterprises nationwide, 0.89 million less than that of the same period last year; there were 4.37 million recipients of unemployment premium, 0.88 million more than that of the same period last year.

(China Daily May 1, 2003)