China’ s Labor Market and Proactive Employment Policy By Liu Yanbin

China’ s Labor Market and Proactive Employment Policy By Liu Yanbin

1.Development of labor market and employment situation 1.China carry out reform and opening-up policy .Its economy maintained steady and rapid growth into the 21st century. 2. T he labor market and employment situation improve d

1.China carry out reform and opening-up policy .Its economy maintained steady and rapid growth into the 21st century. ----In 2006, the gross domestic product (GDP) of the year was 20,9 40.7 billion RMB yuan, up by 10.7 percent over the previous year. ----The general level of consumer prices in China was up by 1.5 percent over the previous year. 250000 209407 200000 183085 159878 150000 100000 99215 50000 18668 0 1990 2000 2004 2005 2006

----The general level of consumer prices in China was up by 1.5 percent over the previous year. 10 8 8.3 6 4 3.9 2.8 2 0 -2 0.4 -0.8 0.7 1.2 1.8 1.5 -0.8 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 -1.4 CPI （ rise ％）

----The total value of imports and exports in 20 06 reached 1,760.7 billion US dollars, up 23.8% over the previous year. ----The utilization of foreign capital continued t o increase. ----China’s foreign exchange reserves reached 1,066.3 billion US dollars at the end of 2006.

2. The labor market and employment situation improved ---- Total employment increasing continually Chart 2. Changes in the number of employees I n urban and rural areas 76000 (Unit: 10,000 people) 75200 74432 75000 75825 73740 74000 73025 73000 72085 72000 71394 71000 70000 69000 1999 2000 2001 2002 2003 2004 2005

----Employment structure improved Chart 4. Employment structure of primary,secondary a nd tertiary industries in 1990 in 2005 In 2005 tertiary industry, 18.50% secondary industry, 21.40% tertiary industry, 31.40% primary industry, 60.10% secondary industry, 23.80% primary industry, 44.80%

----Unemployment rate decreasing slightly Chart 5. Registered urban unemployment rate, 1990-2006 (%)

----Income of urban and rural residents rising Chart 5. Income of urban and rural residents, 1990-2005(Unit:yuan) 12000 10493 10000 9422 8472 8000 7703 6000 4283 4000 2000 0 4839 5160 5425 5854 6280 6860 3496 2577 2027 1510 1701 686 709 784 922 1221 1578 2622 2253 2366 2476 1926 2090 2162 2210 29363255 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 The aver age f ar mer ' s net i ncome Ur ban r esi dent s' di sposabl e i ncome

---- Improving the public employment service system, and fostering and developing the labor market Return

II. The disadvantages and advantages in the labor market and employment 1. Challenges and Problems 2.The opportunities and advantages

Challenges and Problems ---The contradiction between overall supply of and demand for labor is sharp ---The problem of structural unemployment, characterized by a mismatch between the quality of the Chinese labor force and job requirements, is becoming more and more conspicuous. ---The problem of the employment of young people ---There are now 150 million rural surplus laborers who need to be transferred. ---Over 11 million unemployed and laid-off persons who need to be employed or reemployed. --- How to improve the quality of employment is a problem.

2.The opportunities and advantages ----The economy keeps developing in a sustained, rapid, coordinated and healthy way. ----The Chinese government pays close attention to the pr oblem of employmen. ----After many years of exploration and practice, the gene ral policy for solving the employment problem has been s ettled. ----The implementation of the strategies for promoting the coordinated development of different areas. ----With the in-depth implementation and improvement of various policies for increasing employment. RETURN

III. The strategies and policies for improving the labor market system and promoting employment 1.The major goal for the labor market and employment should be set 2.Major policies and measures should be exercised

1.The major goal for the labor market and employment should be set: to increase the posts of employment in large numbers through developing the economy and improving its structure to create a better environment for workers to choose jobs on their own to control the unemployment rate and average unemployment cycle within limits the society is able to bear

2.Major policies and measures should be exercised — Maintaining the relatively rapid growth of the economy, and putting the work of employment and reemployment in a more salient position. — Promoting the readjustment of economic structure and the improvement of employment structure in coordination, and expanding the capacity of employment. — Adhering to coordinated economic and social development of urban and rural areas, and making overall plans for urban and rural employment. — Establishing and improving a market-oriented employment mechanism with free choice of jobs by laborers as the salient feature and the legal system of the government as the foundation.

2.Major policies and measures should be exercised — Raising the level of education, strengthening vocational training, and tailoring the level of human resources quality improvement to the needs of economic development. — Making rational arrangement in social security and employment, and providing basic subsistence guarantee and employment assistance for the underprivileged group. — Raising the level of opening-up, and giving play to China's advantage in labor resources. RETURN