Unemployment grows, workers restive, few solutions seen
(Xinhua)
Updated: 2006-02-16 08:40

China faces a vast and troubling labor surplus this year, estimated at about 14 million, according to the National Development and Reform Commission.

The huge number of unemployed, many restive and dissatisfied, represents a serious social problem that China hopes to deal with by designing a harmonious society. That takes time.

The commission said the country's population over 16 would reach a peak in 2006, adding about 17 million to the work force. About 25 million people in town would like to find steady work for the whole year, the NDRC said.

However, only about 11 million jobs would become available this year, including 8 million jobs to be created during the year if the country's economic growth rate and employment elasticity are maintained.

The surplus - the unemployed - then stood at about 14 million, 1 million more than last year.

The re-employment of laid-off workers would still be a tough task this year, said the NDRC. The country now has about 4.6 million laid-off workers, and another 3.6 million are to be added to the army of laid-off workers in the next three years.

The NDRC said the country would continue to be challenged by the great transfer of the rural labor force in 2006, as 60 percent of the labor supply would come from the countryside and most of the workers would head for towns to seek jobs.

In 2006, China would also have to deal with employment risks posed by overcapacity, trade conflicts, or economic fluctuations.

Meantime, NDRC officials said that 5.1 million laid-off workers found jobs again in 2005, including 1.1 million between 40 and 50.

China's laid-off workers from state-owned enterprises numbered about 610,000 by the end of 2005, the number reflecting a reduction of 920,000 compared with the figure for the 2004 year-end, the NDRC said.

The country's fast growing economy has helped to create more jobs in 2005. About 9.7 million people were employed in town last year, while the employment goal set for the year was at about 9 million.

The NDRC also found a slower growth of unemployment in reviewing last year's employment conditions. By the end of 2005, local governments had registered 8.39 million unemployed workers in towns, 110,000 more than the previous year but growing at a lower rate.

The unemployment rate in town was 4.2 percent in 2005, the same as the previous year.

According to statistics from the Ministry of Agriculture, 108 million rural residents went into town to seek jobs in 2005, 5.64 million more than in 2004, representing the fastest pace in recent five years.