Employment still a problem in 2007

China's Minister of Labor and Social Security, Tian Chengping, said that employment is still a problem this year, given the number of workers being laid-off and new workers entering the job scene.

Tian, who spoke at a news conference on the sidelines of the National People's Congress (NPC) sessions at the Great Hall of the People, said that enterprises will lay off more workers as the companies go through reforms. Those laid-off have difficulties finding new jobs, the Minister said.

Adding to the strain is the almost 5 million students who are graduating from universities and entering the job market this year. Migrant workers are also expected to continue moving to urban areas in search of jobs.

Tian said that the government will try to alleviate the strain on the employment market by boosting economic development in order to create more jobs. Beijing will also carry out relevant fiscal, tax and financial policies to promote employment. Training for job seekers will be strengthened and contact between job hunters and employers will be improved.

Media reports in China have noted that some sectors are actually facing a shortage of workers, particularly in Guangdong and Fujian, the top export areas of China, according to Reuters. Tian said that the government needed to raise the skill sets of workers to help them cope with the changing business environment in China.

At the end of 2006, China's registered unemployment rate in urban areas was 4.1 percent. Economists say, however, that the underlying rate is at least twice that.

Tian also advised university students to set their job expectations lower, as only 7 in 10 could expect to find work after graduation. Students can, instead, offer their services to China's poor and underdeveloped regions.

Employment is a key issue for China because of its large population. Last year, 11.8 million urban residents got new jobs, a record-high that was driven by the 10.7 percent rise in Gross Domestic Product (GDP).

Tian said that the goal this year is to help between 9 to 12 million people to find new jobs. China expects 24 million new job seekers this year.