Wang Yadong (deputy director of the employment promotion department of the Ministry of Human Resources and Social Security) said the unemployment rate will remain below 4.6 percent this year. This rate is the highest level of unemployment since 1980.

About 9 million city residents are unemployed, among which college graduates take 3 million and rural migrant workers take 4.5 million.

On the same day, Wang also said, because of the global economic crisis, the number of unemployed people has been increasing since the fourth quarter of the year 2008.

The Ministry of Human Resources and Social Security is having a great pressure. They have managed to control the urban unemployment rate at 4.3 percent in the second quarter of 2009. However, the situation is still not bright. The jobless rate is increasing for the first time in five years, 4.2 percent in the fourth quarter last year and reaching 4.3 percent in the first quarter of this year.

According to the officer, the global financial crisis is not ready to an end yet. There are still a lot of Chinese companies having a hard time, which makes the unemployment situation severe.

While the economic slows down, the labour-intensive industries of the coastal regions are quickly affected. The jobless rate indicated by the officer didn’t include the country’s 240 million migrant workers.

The total number of migrant workers in cities is about 150 million. According to the ministry’s figures, less than 3 percent of the migrant workers are seeking jobs. This means that only 4.5 million migrant workers are unemployed.

However, before the Spring Festival in January, 20 million to 30 million migrant workers lost jobs. Job flexibility and the government’s stimulus policies have changed their situations. Chinese migrant workers don’t have social safety net and they cannot afford to lose their jobs. The actual employment situation changed with the cost of less pay and longer working hours.

The central government paid 4 trillion yuan for the economic stimulus package. It stimulates the economic growth and brings some slight job increases. The economic growth last quarter was 7.9, compared to 6.1 of the previous quarter.

According to a ministry survey of more than 513 major companies in five provinces, from February to June, 2009, the number of jobs grew by 0.13 percent over October 08 – January 09.

The number of jobs fell by 8.05 percent between October and January. In the second quarter, the demand for jobs has shown a big increase by 50.7 percent more than the first quarter, indicated by the China Institute of Employment Research report.

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There is a contract with the local government that graduate students should work there for 3 years and the central government will pay a special fund for them. “Some jobs are only available to students who will graduate in the summer of 2009,” Ministry Spokeswomen said on March 18th 2009. However, some excellent graduates such as those who once volunteered to work in the countryside in the past year, still, could take part in this project.

The short-term teacher project began 3 years ago to help college graduates find the jobs. Most of the graduates in this project may work in the rural areas and teach pupils or high school students. Besides the wage the get from the central government, they could get some extra money from the local government, said the Xu. Schools may have the right to decide whether to recruit students again after 3 years. The teachers will be employed in public job fairs.

This week, the Ministry also showed some other policies to the public, which may relieve the pressure of employment. There is also a new policy for the graduates who join the army. Government will pay their education loans and those who contribute a lot in the army may have the right to be recruited as the postgraduate students without taking those tough exams.

Those small and middle-size companies who may employ graduates this year will have good news. The government may give them some bonus and reduce some taxes.

MHRSS demanded the local governments to create more jobs for the graduates to ease the employment pressure. In the earlier interview, Wang Yadong, the deputy director of MHRSS’s employment promotion said that local government will give some bonus to college students who work at the bottom class.

Why are there some special funds or subsidies for the college students? These benefit policy is to encourage students to work in the rural area or the grassroots position or to have their own business.

Quite different from the students in the developed countries, Chinese students tend to work in the large cites and companies rather than start their own business. A recent study from MHRSS shows that only 0.3% college students choose to have their own business, while the number is much lower than the number of developed countries which is 40 percent.

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It is reported by Shanghai Foreign Service Co Ltd (SFSC) that since last fall more than 60% graduates have sent out more than 30 resumes. According to Wu Xiaohui, senior campus recruitment consultant with SFSC, graduates are forced by the financial crisis to make full use of every chance to get a job, because lots of companies do not intend to recruit.

In Shanghai, lots of graduates have regretted to lose chances to hand out their resume since last year. Now there are not really many chances for students to find an ideal job. After the Chinese Spring Festival, March is the peak season for fresh graduates to sign job contacts with employers, according to the survey by SFSC.

And another survey shows that more than half of multinational companies didn’t intend to recruit new employees in this tough time, while companies have recruitment plan are going to hire fewer employees.

However, 157 multinational corporations will offer 1000 vocational training opportunities 1,000 vocational training opportunities, 1,000 internship positions and 1,000 job openings for graduates.

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The student from the shanghai University of science and Technology wanted to apply for the Shanghai World Expo volunteer program, which he believed would bring her “some experience to build necessary social skills” while getting involved in “such an exciting” event.

If she failed to find a satisfactory job this year, at least she could do something in this world-class event, which would benefit her in the future.

Yu is happy that the expo will give up its volunteer recruitment program in May this year. Now more than 1 million volunteers hope to be hired.

Chen Zhenmin, director of the shanghai World Expo Social Mobilization Office, said yesterday that while most volunteers would be hired from college students, this did not mean that other people would not be welcomed.

The Expo will last for 184 days, from May 1 to Oct 31. During these days, volunteers will serve 14 to 20 days on average. But authorities might extend the period because of passionate and enthusiastic response form the public.

Authorities said the expo would provide 2000 to 3000 jobs for college graduates this year. “A large number of people would be trained to communicate with foreigners, which will help the city in the future,” said Xu Weiguo, deputy Party chief of shanghai World Expo Coordination Bureau.

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As the financial crisis gets closer to the workers’ daily life in Shanghai, the white collar and some gold-collar workers are like toast of the town, feel the pressure from all sectors.

A Shanghai white-collar worker of an American company told us his company has relieved 10 percent of the staff, and there would be more layoffs after the Chinese lunar New Year holidays. The unnamed employee also said that during every day’s work recently, his colleagues are talking about who will be the next one to leave the company.

The latest entrants to the jobless club Miss Xu who used to work in a foreign-funded real estate company as a human resource manager in Shanghai complained to us: " Our company has laid off staff since the middle of December and around 55 percent of the original staff lost their jobs in this financial crisis and I also get laid off with two months’ salary as termination pay.

According to the statistical data of Shanghai government shows that the country’s heavy reliance on export, labor-intensive industries creates a ripple-down effect and industries related to trading, finance and economics, It, communications, banking, consultancies, media firms etc are all facing cost cuts.

A white paper released in January by Shanghai Human Resources Consulting Association predicted that the first-half of 2009 would see negative growth in new positions at Shanghai’s foreign companies and privately-owned firms.

The white paper also shows that the 7000 foreign companies survive in Shanghai showed that 48 enterprises had already started feeling the effects of the crisis.

A total amount of 2,218 employees were laid off or 0.79 percent of the entire staff. And even worse the situation will not get better until the second-half.

With the cutting off of employees the employments dispute cases had jumped to 30 percent of all cases. To protect the legal rights of employees, Shanghai government had asked those enterprises which cut more than 20 jobs or more than 10 percent of the entire staff to file a report with the local trade union or notify all staff 30 days before the final decision. This requirement is also in keeping with state council’s recent guidelines.

This policy can help the workers secure their own benefits and show the responsibilities to the enterprises which are particularly valuable in the financial crisis. But also Shanghai government also knows that if the small-sized enterprises do not cut jobs they will soon or later out of business, so the government also provide a better business environment, free credit controls, and reduce business costs.

Miss Xu is stilling looking for a new job after having been cut for two months. She has to lower her salary expectations and increase his job search field in order to get a new job quickly. Meanwhile, information from the HR company shows that even in the crisis the enterprises are still looking for talent workers as always.

Total 282,210

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Lu Lin, director of the bureau’s college graduate employment department, said job seeker can register at related departments in Beijing’s 18 districts and countries and then these departments will match them with employers.

This year witness at least 210,000 local college graduates entering the job market, with more than 90,000 holding the Beijing Hukou. Figures from the Beijing Municipal Education Commission show the number of this year’s local graduates is 14,000 more than last year.

If there’s not enough suitable position for graduates, they are recommended to other districts or countries, the official said.

More measures are also stepped up by related government departments to encourage enterprise to recruit more college graduates. These measures include career counseling and training, and additional support to those with physical disabilities or those majoring in subjects less popular with employers.

In the next month, 80,000 job vacancies for graduates through 150 career fairs will be offered, said the bureau. Details of the career fairs and information of vacancies can be found on zhaopin.bjrc.com and www. Bjbys.com. Beijing will also hire college graduates as community assistant to encourage them to work at the grassroot level.

College students in Beijing think highly of these latest efforts to boost employment for students to graduate in July. For example, Dong Bo and Zhao Kai hold the similar opinion that they will cherish every job opportunity to improve themselves.

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At the same time, the job market will be patronized by more that 7 million college graduates. And about 9 million urban unemployed would be hit by the slim possibility of getting a job.

The job fair lasted for two days. And the candidates were scrambling for the 3,000 to 4,000 posts offered by about 300 employers.

“We can get from the look of the fair that the job market is doom now,” Li Shuyu, a fair organizer, said, “We have strengthened the security for the fair. Many job hunters were unwilling to leave the hall even after the fair closed at 4 pm because they wanted to have a few more words with their prospective employers.”

Since the global economic recession attacked the job hunters in its strength this year, the government would meet the toughest period in the first half of this year. For this, it has to prepare for almost 8 percent GDP growth against the double-digit increase in the years before. And the registered urban unemployment rate is expected to be kept at 4.6 percent this year, reaching the lowest point since 1980.

A large number of people outside Beijing could not resist the temptation of finding a job and were attracted to the two-day fair. “We came here in the belief that Beijing would offer more opportunities,” said a woman from Shandong province who was accompanying her daughter. “But we’ve found there are more job seekers here.”

The lady, with her daughter, is still staying in the hotel with the intention to attend more job fairs to be held in the weeks to come. She said that her daughter was under great burden, so she could not just let her hunt a job alone.

Job markets are not only the straw for people who are young, weak and fresh, but those with perfect capability. Chen Liuyu, the former vice-president of a container company, is the one in case. He quit shortly after the company launched a restructure plan as the result of the global financial crisis. He said in the first time he attended a job fair that he had always kept an open mind and he just wanted to figure out the fair that day. He was in full confidence that he would get an ideal job in no time with his 30 year experience.

As it was reported officially that about 20 million migrant workers had been driven out of career since many labor-intensive factories handling export business had slowed down resulting from the crisis.

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Students in the Beijing University of Aeronautics and Aerospace’s library greeted Wen cheerfully who visited the university in surprise with the good news.

The news that government is going to help 6.5 million graduates find jobs next year renerved many job hunters amid global recession.

Based on the report of a Chinese Academy of Social Sciences, a quarter of China’s college graduates would have difficulty finding a job next year.

But Wen has promised that the government is putting the problem of graduates’ employment on top of their agenda.

The two issues created by financial crisis the government is worried about most are migrant workers returning home and jobs for graduates.

The government will try to create 9 million jobs for the 6.5 million students expected to graduate next year, based on an 8 percent GDP growth, Wen said.

The government will work on a policy package to stimulate major scientific research projects and large enterprises to create jobs for graduates, he said.

Some graduates will be encouraged to work for research programs in their universities, too, and relevant ministries asked to make the procedure smooth, he said.

The State Council has issued a directive asking companies to avoid large-scale lay-offs and solve any labour disputes, especially those over pay, on a priority basis.

The directive also said that companies that down shutters or go bankrupt must strictly follow the law and owners who unnecessarily hold back wages or run off without paying workers will be firmly dealt with.

Before visiting the university, Wen and former Japanese Prime Minister Yasuo Fukuda joined 2,008 youths from China and Japan at the university gym for the closing ceremony of the China-Japan Youth Friendly Exchange Year.

Wen and Fukuda had decided to hold the program when they met in Singapore last year.

Wen gave high comments of the activity during his half-hour meeting with Fukuda before the closing ceremony.

Under the programme, there were more than 12,000 youth from two sides visiting each other’s country after President Hu Jintao launched it in Beijing in March.

The programme, which coincided with the 30th anniversary of the signing of the China-Japan Peace and Friendship Treaty, makes “the exchange all the more significant”, Wen said.

The 1,000-member Japanese delegation visiting to China for a week is the finale to the programme.

The programme will continue for the next three years, with 4,000 people exchanging visits each year.

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They said that the rates of basic medical, unemployment, workplace injury and maternity insurance for urban residents can be reduced (in some areas) by a proper margin for a maximum of 12 months next year.

The Ministry of Human Resources and Social Security, the Ministry of Finance and the State Administration of Taxation said companies in financial difficulties can delay payment of social security funds for up to six months.

But, the statement said, without elaboration the criteria of “financial difficulty”, the rate of contribution to pension funds should not be cut.

Typically, 20% of an employee’s basic salary are paid by companies to the pension fund while 8% by employee.

Medical insurance comprises payments of 6% of the salary by a company and 2% by the employee.

The ministries will also allow local governments to use unemployment insurance funds to subsidize jobs at struggling companies for a maximum of six months. But only companies that promise not to lay off workers or cut only a small number of jobs will be subsidized.

At the same time, all the measure should not decline people’s social security benefits and cause a shortage of the funds that back social welfare.

Other measures include:

• Setting up of special funds to help train workers;

• Encouraging employers and employees to negotiate and sign economic compensation agreements on job cuts.

The moves above are the latest ones from central government to help raise the rate of employment.

Before the Spring Festival, hundreds of thousands of more than 200 million migrant worker have lost their jobs and have had to go back home.

The rate of China’s urban registered unemployment stood at 4% in the third quarter, but may rise in the next quarter, according to officials earlier.

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According to a recent survey of Manpower Inc, a leading global employment services provider, the rate of hiring new employees of companies in Beijing, Shanghai and Guangzhou become the lowest.

The current job market is affected by the financial crisis. Lucille Wu, managing director of Manpower Greater China said that the recession of global economy and exports have made employers more cautious about hiring new staff.

Due to a tighter job market that 24 million people will compete for 12 million jobs next year, the highlight of the stimulus package from the government is to introduce a special nationwide vocational training programme, especially for laid-off and migrant workers, to ease the pressure on the job market.

The unemployment insurance fund has been over 100 billion yuan ($14.5 billion) and its high time it is used, according to Zheng.

It is said that most of the finance given to the package will be used for special employment and unemployment insurance funds.

About half of 230 million migrant workers in China are working away form their provinces while about 60% to 70% of them are below 28 and lack basic agricultural skills, Zheng added.

In Zheng’s opinion, there is a tendency that more and more surplus labourers in rural areas will migrate to cities and become industrial workers. In that case, we should not force them to go back to the countryside.

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