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More efforts should be made to expand employment, says a commentary in China Business News. An excerpt follows:

Minister of Labor and Social Security Tian Chengping told media recently that there would be more than 24 million people looking for jobs annually over the next few years. However, given the present economic structural conditions and growth rate, there will only be about 11 million positions available. The demand far exceeds the supply.

Though an old topic, the employment situation is still grave, especially in the phase in which China is deepening its reform. At the same time, over-capacity in some industries might create new unemployment. International trade conflicts and the revaluation pressure on the renminbi might also make an impact.

China has initiated proactive employment policies since 2002 in order to help disadvantaged groups, such as laid-off workers, find new employment. But now the unemployed groups are diversifying. Even college graduates have become a disadvantaged group.

All these complications require new breakthroughs in employment policies.

Two areas in particular should be considered in the quest to boost employment. First, there should be a balance between labor-intensive enterprises and industrial upgrading. Second, a healthy environment should be cultivated for the development of small and medium-sized enterprises and the non-public sector, which have been expected to become a major force in increasing employment. There are only 2.5 small enterprises per 1,000 people in China, while the number is about 45 in some developed countries. The government needs to take more measures to improve this situation.

On one hand, the development of economy requires upgrading industrial structure. On the other hand, traditional labor-intensive enterprises provide more jobs.

It is undeniable that economic growth can increase employment. But China's employment growth fell behind economic growth in recent years. Therefore, it is necessary for the government to carry out policy intervention to lessen employment pressure.

(China Daily November 30, 2006)