3.The number that newly joined the labor force will be at an unpredicted peak. This year, the Chinese workforce is bigger than it was last year by more than 2 million workers. In the coming few years, 12 to 13 million will enter the labor market per year. Even if China retains its current 7% economic growth per year, only 8 million jobs will be created. This means the annual newly added unemployed will be 4 to 5 million. By the end of 2005, a new unemployed force of 20 million will appear. 4.The post Sept. 11 impact on China's exports also added to the severity of the problems.
It is obviously to see that many urban job seekers will be disappointed this year because of the lack of job vacancies. About 24 million new urban laborers, workers laid off from State-owned enterprises and registered jobless people have been swarming into job fairs but 10 million openings at most will be available by the end of this year. China's service sector was once a key element for providing jobs for new people coming into the workforce, but it experienced a sharp downturn during the SARS period. Catering, commerce and social services were the worst hit by SARS. Many small and medium-sized enterprises had to shut down and this inevitably led to a sharp decrease in demand for workers. SARS slowed down the growth rate of the income of urban and rural residents and forced between 7 million and 8 million laborers from rural areas to return to their hometowns. It said the per capita income of China's farmers was reduced by about 35 yuan (US$4.50) in the second quarter of this year.
Ministry officials said that China regards employment growth as its top economic priority, and the country will take every measure necessary to boost employment, including tax reductions, loans granted on preferential terms (to firms that employ laid-off workers) and social security insurance subsidies to help improve the situation.
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The government plans to develop its rural economy at a faster pace to create more job opportunities for farm laborers.