More efforts should be made to expand employment, says a
commentary in China Business News. An excerpt follows:
Minister of Labor and Social Security Tian Chengping told media
recently that there would be more than 24 million people looking
for jobs annually over the next few years. However, given the
present economic structural conditions and growth rate, there will
only be about 11 million positions available. The demand far
exceeds the supply.
Though an old topic, the employment situation is still grave,
especially in the phase in which China is deepening its reform. At
the same time, over-capacity in some industries might create new
unemployment. International trade conflicts and the revaluation
pressure on the renminbi might also make an impact.
China has initiated proactive employment policies since 2002 in
order to help disadvantaged groups, such as laid-off workers, find
new employment. But now the unemployed groups are diversifying.
Even college graduates have become a disadvantaged group.
All these complications require new breakthroughs in employment
policies.
Two areas in particular should be considered in the quest to
boost employment. First, there should be a balance between
labor-intensive enterprises and industrial upgrading. Second, a
healthy environment should be cultivated for the development of
small and medium-sized enterprises and the non-public sector, which
have been expected to become a major force in increasing
employment. There are only 2.5 small enterprises per 1,000 people
in China, while the number is about 45 in some developed countries.
The government needs to take more measures to improve this
situation.
On one hand, the development of economy requires upgrading
industrial structure. On the other hand, traditional
labor-intensive enterprises provide more jobs.
It is undeniable that economic growth can increase employment.
But China's employment growth fell behind economic growth in recent
years. Therefore, it is necessary for the government to carry out
policy intervention to lessen employment pressure.
(China Daily November 30, 2006)