He Guanghui, a member of the Standing Committee of the Ninth National Committee of the Chinese People's Political Consultative Conference (CPPCC), said that it was a major task in maintaining China's social stability.

The aim is to safeguard the legitimate rights and interests of laid-off workers and retired people, said He.

He said that more than 90 per cent of those who received the minimum living allowance were laid-off workers or people who face problems such as high medical bills for sick family members.

Efforts must be made to increase job opportunities and increase the income of urban and rural residents, especially low-income groups, He added.

In recent years in urban areas, many laid-off workers have failed to make enough for a decent standard of living, and rising medical charges discourage them from seeking hospital care.

Most laid-off workers from State-owned enterprises are relatively senior workers, poorly educated and unskilled. Therefore, it is rather difficult for them to find another job.

In reports to the current Standing Committee meeting, the advisers discussed how to lighten the burden of these people and help them find new jobs.

Mao Zengdian, a member from Shanghai, said that local governments should establish a job-market information network to promote the exchange of information concerning labour supply and demand, and help the unemployed find jobs.

He said that local governments should promote different forms of education to help jobless people improve their skills and gain academic and vocational qualifications.

He said that the establishment of community-run employment agencies should be encouraged in order to formulate a multi-level employment-service network.

Chen Kaizhi, from Guangdong Province in South China, said that the central and local governments should build a social-security system more quickly to guarantee minimum living expenses for the unemployed, retired people, and others on a low income.

"It is necessary for the government to grant preferential policies, such as reducing and waiving taxes, to encourage the development of welfare enterprises," Chen said.

Conference members also indicated during their group meetings that the problem's fundamental solutions must be guaranteed by legislation, such as social-security and insurance laws.

(China Daily June 28, 2002)