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China's unemployment situation remained stable in the first half of this year with the urban unemployment rate reported at 4.2 percent.

 

China's Ministry of Labor and Social Security (MOLSS) announced in Beijing on Monday that there were 8.33 million urban unemployed at the end of June, a decrease of 60,000 from the previous six month period.

 

Earlier statistics from the Ministry of Labor and Social Security show the registered urban unemployed numbered 8.39 million at the end of last year, including 1.53 million laid-off workers.

 

China's unemployment statistics only focus on urban areas. An official with the MOLSS said that China's government administrations provided more job opportunities and help with finding jobs for the unemployed. Some local governments developed favorable policies and launched specific programs for the unemployed and laid-off workers. Such efforts have paid off, the official said.

 

In the first half of this year the urban workforce increased by 6.08 million, with 2.36 million laid-off workers and registered unemployed people finding jobs.

 

"We still face serious challenges if we want to realize the new goals for the next five years," the official said.

 

On July 25, Chinese Premier Wen Jiabao in a regular meeting of the State Council proposed that China should keep its urban unemployment rate at five percent in the coming five years. That will require new jobs for 45 million urban people and 45 million migrant workers over the next five years. Earlier this month, the All-China Federation of Trade Unions (ACFTU) vowed to help one million laid-off and unemployed workers find jobs by the end of next year.

 

"In the next three to five years China's working population will peak, putting increased pressures on society," Sun Chunlan, vice president of the ACFTU told Xinhua, citing the growing number of migrant workers and college graduates.

 

Sun revealed that trade unions would assist with training or small bank loans to help workers start their own businesses, which could boost job opportunities for others.

 

Many unemployed and laid-off workers lead hard lives as they lack not only jobs but education, health care and housing, Sun said.

 

Premier Wen has vowed to increase the government's investment in social security.

 

Job creation has been a long-standing concern of the government since the country adopted a market economy in the late 1970s and undertook reforms in state-run enterprises, which resulted in many layoffs.

 

This year the government has allocated 185.98 billion yuan (US$23 billion) to help the unemployed and for social security, an increase of 23.6 billion yuan (US$2.95 billion) over last year.

 

(Xinhua News Agency August 1, 2006)