China's unemployment rate of serious distortion, the actual unemployment rate has already reached

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Chinese Academy of Social Sciences in December 16, 2008 release of "Blue Book society," said

China's urban unemployment rate has climbed to 9.4 percent, 7 percent more than the international

warning line, rather than the Government announced the end of the third quarter as at the

registered urban unemployment rate of 4.0% of the statistical data more than doubled! The

difference between the two statistics was so large, people do not know who to believe. But want to

look cool, in 2008 at the macro-control to suppress and financial turmoil, the country has closed

down more than 10 million small and medium-sized, it is natural to believe that the Academy of

Social Sciences data. In fact, over the years and the Chinese Academy of Social Sciences at the

National Bureau of Statistics on the unemployment rate has been holding different views. For

example, in 2001 the registered unemployment rate in cities and towns throughout the different

conclusions. Labor and Social Security, the National Bureau of Statistics in the "2001 Labor and

Social Security, the development of statistical bulletin" that the country registered urban

unemployment rate was 3.6%. The Chinese Academy of Social Sciences in the "Population and Labor

Green Paper" in that: the real unemployment rate in China's cities has reached the warning level by

7%. Conclusions have also almost doubled. In addition, according to the fifth census, in 2000

China's urban unemployment rate was 9.4%, 8.7% for one of men, women 10.4%. And in accordance with

CASS Institute of Population and Labor Economics in Fuzhou, Shanghai, Shenyang, Xi'an and Wuhan and

other cities in five representative points of the tune, since September 1996, five city workers

between the ages of 16-60 age population, the unemployment rate has been above 8 percent, and

continues to rise. From the beginning in February 2002, the unemployment rate even exceeds 14%, far

higher than official figures of registered urban unemployment rate. From this point of view,

regardless of the macro-national census data, or micro-survey data, the urban unemployment rate has

been far higher than official statistics, "the registered urban unemployment rate." In 2006, an

associate researcher at the Shanghai Academy of Social Sciences, Yan-bo have think, if put into the

balance of rural surplus labor, China's unemployment rate should be as high as 20%. If the "off"

and "unemployment" implementation merged unemployment figure will be higher. Prior to this, the

Chinese mainland Taiwan economists measured at more than 30% unemployment rate, the Asian

Development Bank estimates at 34.3 percent. I integrated all aspects of the data, after careful

projections, convinced that China's current unemployment rate has reached 33%.

First, why the difference between the unemployment rate so much?

On the one hand, on different statistical methods. As we all know, the current unemployment rate

in China has two, one is called the registered urban unemployment rate, a survey called the

unemployment rate. Registered urban unemployment rate registered unemployed persons generally

refers to: a non-agricultural household, age of men at 16-50 years old, women 16-45 years old,

unemployed and the requirements of employment, and at the local employment service agencies job

registration personnel. However, the registered urban unemployment rate indicator not only covers a

very small and man-made traces of regulation is clear: first, it does not include those

re-employment service centers for laid-off workers, and in fact laid-off workers and unemployed

persons have no real distinction; b state-owned enterprises are in existence a considerable number

of surplus staff had not been diverted, that is part of hidden unemployment; three are the

registered unemployment rate did not include the foreign population; four are in rural areas did

not include the existence of the large number of the unemployed; five indicators are artificially

controlling the rate of unemployment . For instance, the provisions of the new graduates at the

University of unemployed 6 months later, are eligible to register as unemployed persons. And in

some places in order to control the registered unemployment rate, registered unemployment

indicators. Such as a factory firing 500 workers, but only to the 100 registered unemployment

indicators, so that the Government has only 100 workers, the burden of unemployment relief. Six are

in the unemployment restrictions on registration procedures. The unemployed must be carried out at

the original domicile registration of the unemployed. If you are in Xi'an or Lanzhou account,

unemployed after working in Shanghai, you must return to Xi'an or Lanzhou to register as

unemployed, unemployment insurance can only receive in Xi'an or Lanzhou. Looking for a new job火燎

impatient people, who would 300 for each month of unemployment benefits all the way back to the

household registration and the location of registration of jobs? Other seven are not yet registered

or have the power to conduct the registration of persons are regarded as employment. Registered

urban unemployment rate method admit only to the local Department of Labor and Social Security

registered in compliance with the above conditions of unemployment statistics for the staff were

unemployed, many do not register above the unemployment statistics for the population does not even

unemployed persons. Moreover, the developed countries at the time of registration only requires

that the lower limit of age, does not require the upper limit of age, while China provides

50-year-old man and 45-year-old female registered job-seekers should not obviously inconsistent

with international practice, it is also inhuman. So much, "4050" of people neither in employment

nor social relief. Even so, the registered urban unemployment rate also showed a trend of increase

over the years.

"The survey unemployment rate" is the adoption of internationally accepted definition of

international standards in accordance with the modalities of the inquiry achieved investigate,

through the household survey system of unemployment statistics. Urban labor force survey of the use

of internationally accepted definitions of unemployment, specifically referring to the resident

population in cities and towns over 16 years of age, have the ability to work, no job during the

investigation, the current employment has in some way may find work. From this definition we can

see that the urban labor force survey of the unemployed from the labor market is mainly in terms of

the definition of supply and demand, that is, whether local or foreigners, whether agricultural or

non-agricultural household accounts, whether in the employment services agencies registered job

seekers or job-seekers have not been registered, as long as consistent with the definition of

unemployment, as the unemployed statistics. At present, however, through the urban labor force

survey statistics, the urban unemployment rate have not yet been officially announced.

Obviously, the registered urban unemployment rate on the one hand, because the provisions are

subject to various restrictions, on the other hand, because of our country's employment service

system and the social security system is not perfect, to the Department of Labor and Social

Security of job seekers registered with employment services of the unemployed persons are subject

to various constraints small quantity, together with employment and unemployment registration is

not perfect and norms, there is the real unemployment rate is higher than the registered

unemployment rate in a very serious problem, so it should not truly reflect the unemployment

situation in cities and towns.

Investigate the unemployment rate because of the use of internationally accepted definition of

international standards in accordance with the modalities of the inquiry to obtain information on

the investigation of unemployment, relatively true, but because of the higher unemployment rate

reflected not in conformity with "stable" "harmony", such as required, so the inconvenience to the

community published. Two statistical methods are a far cry from the results, at least in the above

several times. However, no matter what methods are not truly, objectively reflect the unemployment

situation in our country, because neither put unemployment biggest groups - the farmers into the

scope of statistics. China is a country with 800 million population of the big countries in

agriculture, the rural population accounting for 70 percent of the total number of population

Moreover, China is not yet belong to the industrialized countries, still belong to the

industrialization and urbanization of the agricultural transition country. Therefore, the Chinese

peasant question is the key problem of unemployment. In 2004, the Department of Labor and Social

Security of 26 cities in more than 2,000 enterprises by the survey indicates that migrant workers

accounted for the total number of employees 59.8%, exceeding the city workers, has become the main

force in the industrial city. But as a country's unemployment rate statistics, actually put such a

significant migrant workers excluded groups of migrant workers are extremely irresponsible. Because

it is not included in the scope of National Statistics, which means that regardless of abandoned,

without any social assistance.

Thus, taken by China's current unemployment rate is extremely unscientific statistical methods,

imperfect and inhuman with the international standard for a larger gap. Although the unemployment

rate indicator of China's international standard for the unemployment rate and the formula for

calculating the indicators are basically the same, namely: unemployment rate = number of unemployed

/ (number of unemployed persons in employment +) × 100%. However, in statistical definitions and

statistics on the scope are very different.

The thirteenth session of the International Labor Statistics by the General Assembly resolution

(hereinafter referred to international standards) in the "unemployed" is defined as the statistics:

at a certain age more than the economically active population, within the required period at the

same time staff have the following conditions: ( 1) There is no job, that is not employment or

self-employed; (2) the current work may have, may be employment or self-employed; (3) is looking

for work, that is a specific period in the recent steps have been taken to clear looking for work

or self-employed.

But our country will be defined as unemployed for more than 16 years old, and has the ability to

work within the legal working age (male 50 years old, female 45 years of age), in the survey week

did not have the income to engage in labor, employment may have and are being addressed in some to

seek work in cities and towns have the personnel account. This GB standard definition of unemployed

persons as compared to the statistics of unemployed persons in our country the scope and

implementation of international standards of developed countries, the difference is mainly due to:

First, China's unemployed only included in the registry accounts of urban areas where relations

with staff, while developed countries The unemployed persons, including the definitions of

unemployment consistent with all the staff. Second, unemployed persons in our country there is the

minimum age requirement and the ceiling, and unemployed persons in Western countries, generally

speaking, only the lower limit of age rather than the upper limit of age, that is, including those

who have reached or exceeded the retirement age in line with the definition of unemployed persons.

Three unemployed persons in our country are only included in the Labor Department to carry out

registration of the unemployed persons, and unemployed persons in developed countries in various

ways including looking for work.

On the other hand, unemployment on the different cognitive. A long period of time in our country

are put unemployment as the evil of capitalism, socialism should not have unemployment. In order to

avoid discussions on "unemployment" and does not recognize the problem of unemployment in our

country there is only accepted and all along adopted a "unemployed," the concept. Until 1993, for

the same "socialist market economy" system requirements, China's only officially begin with the

concept of unemployment has been replaced by the concept of looking for jobs, and in January 3,

1995 began experimenting with new unemployment investigate statistical methods . Beginning in 1996

will be the registered urban unemployment rate as the national economic and social development

plan, one of the main macro-control targets. However, because the idea is still bound by the

traditional and "stable" "harmony" of the background, so that the indicators are subject to various

"characteristics" "conditions" and other provisions of the restrictions, and "franchise" control,

and simply can not put a high unemployment and the situation across the international warning line

available to the public, making China the long-term unemployment rate at 4% or less, become the

world's highest employment rate in the world. This is situated at China's economic restructuring,

structural adjustment, urban-rural dual structure, to the rapid development of urbanization, such

as the transitional stage and a huge 1.3 billion population are very discordant, is a comedy and

the practice of self-deception.

Second, the number of unemployed in the end? 33% unemployment rate is calculated how?

Even if the Chinese Academy of Sciences of the unemployment rate slightly lower than the official

close to the actual point, but still bad compared with the actual far. In that case, the national

number of unemployed in the end? 33% unemployment rate is calculated so how?

First of all, cities and towns throughout the registered unemployed population and the registered

unemployment rate. National Bureau of Statistics data show that since 1978, China's registered

urban unemployed population or the registered unemployment rate in the peak has appeared twice,

first the latter are caused by cultural revolution "sequels," tens of millions of young

intellectuals to the countryside返城the mountains, caused by large-scale open unemployment

population (then known as population unemployed or unemployed youths), in 1980 reached 5,400,000,

of whom 2.83 million unemployed youths for people, and then show a downward trend, reaching a

trough in 1984, beginning a gradual increase, from 1992 After beginning to enter the second peak of

unemployment in 1992, the registered urban unemployed persons was 3,939,000, the registered

unemployment rate was 2.3%; in 1999, unemployment registration 6000000 large population growth, the

unemployment rate was 3.2%; in 2001 cities and towns throughout the registered unemployed The

number of 6,810,000 people, the registered unemployment rate was 3.6%. In addition to Hong Kong,

Macao, China a total of 1.28 billion population, employment population of 730 million labor force

participation rate of 77%. In 2002, the registration of the unemployed population of 8,500,000, and

the unemployment rate reached 4.0 percent in 2003, registration of the unemployed population of 800

million, the unemployment rate reached 4.3 percent, statistics show that China's cumulative number

of registered unemployed reached 24,000,000 people.

Secondly, the state-owned enterprises and other laid-off workers ownership situation. Macroeconomic

Research Institute of National Planning Commission, the experts show that in 1993 cities and towns

throughout the laid-off workers for three million people in 1994, 3,600,000 people in 1995,

5,640,000 people in 1996, 8,916,000 people in 1997, 12,000,000 people, which is equivalent to 4

times in 1993. In 1998, 8,770,000 people in 1999, 9,370,000 people, from 2000 to 2003 an average of

1,000 million people. From 2004 until now, every year millions of people laid off, which also has

at least five million laid-off people. But year in and year out再就业率laid-off workers. Statistics

show that in 1998 the再就业率are 50%, but in 2001再就业率only 30% in 2002 are 15%. Even if all再就

业率in accordance with the laid-off workers 50% of the optimistic estimate. At present, the

employment of laid-off workers still have not yet reached 40 million people, equivalent to the

urban economically active population of 20%. Most of those laid-off workers are "4050" and the less

educated and low-skilled staff, it is difficult to re-employment.

Third, the rural and labor situation. China's rural labor force is currently about 490 million, 19

million mu of cultivated land nationwide (about 7% of the world), and according to China's current

production capacity of the rural labor force, each 10 acres of farming labor calculations, only 190

million of agricultural labor, urban the employed labor force in enterprises 130,000,000, only the

320 million rural laborers have been fully utilized, there is the 179 million rural surplus labor

force, which although some people have seasonal migrant workers. If in accordance with

international practice to the world average of agricultural productivity is estimated that China's

plant industry required a maximum of 4000-5000 million labor force, will have 319 million rural

surplus labor.

Fourth, the state-owned enterprises and government agencies and institutions of reform, if

completed by 2010, to the community around the release of 1 / 3 more than made redundant. Taking

into account the staff will be laid off about 20 percent quit because of age can bring the labor

market, so there are about ten thousand people laid off more than 3000 average annual number of

three million laid-off.

Fifth, the "Tenth Five-Year" for the working-age population during the peak period of growth,

China's urban and rural areas will average near 20 million new labor force growth of employment

required. One of typical college students are the new labor force. National University in 2001 to

1.14 million graduates, the employment rate was 70%; 1,450,000 people in 2002, employment rate is

80%; 2,120,000 people in 2003, the employment rate was 75%; 2,800,000 people in 2004, the

employment rate for 73%; 3,380,000 people in 2005, employment rate of 72.6%; 4,130,000 people in

2006, employment rate of 70%; 4,950,000 for 2007, the employment rate at 70%; 2008 graduates

reached 5.32 million nationwide, and employment rate of 70%. Can be seen that the number of

graduates continues to rise, while the unemployment rate continues to decline year after year.

Moreover, college students are aware that the employment rate statistics are considerable moisture.

Even if the official in accordance with the algorithm, also has more than 700 university students

in ten thousand unemployed. By the financial crisis, in 2009 the employment rate of university

students will be lower.

To sum up, the registered urban unemployed population of more than 2400 million people, laid-off

workers for more than 4000 million people, 179 million rural surplus labor force people (not

including rural school graduates, demobilized military cadres in the demobilization of about more

than 250 million people), the state-owned enterprises and government agencies and institutions an

annual reduction of redundant staff more than 300 million, more than 700 million university

graduates, urban and rural labor force new growth near 20 million people, GDP growth of minus 8%,

the employment elasticity coefficient of 0.13 for the labor market to provide of 8,000,000 jobs to

the calculation, China's true population of 261 million unemployed people. According to the

national labor force 790 million people, the China's current unemployment rate of urban and rural

population, at least at 33%.

Third, unemployed persons with younger-and long-term nature of

With China's entry into the elderly and the rapid development of the national economy are not in

harmony, our unemployed long-term unemployment tends to the number of younger and many features

such as: First, unemployed persons younger. This is the so-called "phenomenon of 2030", that is,

20-year-old to 30 people between the ages of the employment problems faced. As a new phenomenon of

unemployment, which in fact can also be called the phenomenon of graduate unemployment. According

to an investigation, the largest city Shanghai, the registered urban unemployed persons over 16

years of age in 30 years of age who accounted for 50%. With high knowledge, highly educated group

of undergraduate and graduate students had high unemployment. Began to emerge in recent years the

"knowledge-based labor surplus" to reflect China's current employment difficult. From 2001 to the

present status of previous employment of college graduates deteriorating employment situation very

difficult. Because of the low employment rate of college graduates, required for stability, often

do not see the employment rate of college graduates nationwide data, but by the Ministry of

Education and the Ministry of Labor announced in advance: we must at this year before September 1

to ensure that college graduates an employment rate of 70% or 80% of orders and so on. Now that the

employment rate of university graduates as a "political mission", then the employment rate of the

water it can be imagined.

Second, the number of long-term unemployed. March 17, 2003, at the National People's Congress was

held during a press conference, Labor and Social Security Minister Zhang acknowledged that China is

not only a high unemployment rate and the number of long-term unemployment more and more difficult.

The so-called long-term unemployment means that more than half a year in accordance with

international standards can not find a job is the long-term unemployment. Morong Labor economists

estimate that an unemployed person in our country, there are more than half of long-term

unemployment.

Three are hidden unemployment has become increasingly serious. Hidden unemployment is also known as

the potential of unemployment or job unemployment, referring to the employer by the workers engaged

in employment should not give full play to their ability to work or engage in the kind of labor

productivity is lower than the standards that he can work. Its typical characteristics are: name,

said the employment of workers, and in fact are in a state of unemployed or underemployed. Since

workers at their jobs on or nothing to do, or not have enough work to do. They belong to have been

placed in employment but not with the material factors of production to achieve a reasonable part

of an effective combination of labor, that is redundant. On the end of the century, state-owned

enterprises on the surplus reached more than 2000 million people. It was also the first half of

1996 statistics, the state-owned enterprises in every two workers, a job at money-losing

enterprises. Look from the direction of reform, unemployment from recessive to dominant is its

inevitability.



Four, in the unemployment statistics and the relief on the western developed countries, we are

far less humane



As can be seen, our unemployment rate has been much higher than the western developed countries. At

the financial crisis in 2008, under the influence of the United States unemployment rate was about

8.2%, EU 8%. However, the Western developed countries at the statistics on unemployment and relief,

etc. is much better than China's. To the United States as an example: the unemployment rate are the

people the United States Government to measure the performance of one of the important indicators.

Therefore, the U.S. government attaches great importance on the unemployment rate, no less to the

GDP of the Chinese Government attaches great importance. First of all, compare the statistics

between the two countries. Statistics of the United States the unemployment rate has three caliber.

The first is to "investigate the unemployment rate home", which are all of the population over the

age of 16 included a comprehensive survey of employment. Statistics This is the most broad of a

caliber. By this standard, the United States from December 2007 to November 2008, a total of 2.7

million increase in the number of unemployed people, a total of 10,330,000 unemployed. Second to

"investigate the unemployment rate units." Refers to the unit (the employer) for the employment and

dismissal, where information from the IRS to obtain payroll data, the unemployment rate calculated.

This unemployment rate was generally as a "home unemployment investigate" a supplementary

explanation. This unemployment rate statistics on a much smaller diameter than that. Since some of

the liberal professions who are often excluded from the statistical outside. By this standard, the

United States since December 2007 to November 2008, a total of 1.9 million increase in the number

of unemployed people, only 70.4 percent of the first. Third on the Chinese, we usually hear at the

"registered unemployment rate." Unemployment benefits from the Department to obtain registration

forms for the number of unemployed and an unemployment rate calculated. This unemployment rate is

the basic American society will not be recognized by almost no official report. Since this rate is

extremely distortion rate of unemployment. First, because high-income unemployed people generally

do not register to the relief department; Second, short-term relief to the unemployed to the

department rarely registration; are three in particular are many more than the duration of

unemployment benefits the unemployed receive unemployment department not hands. November 2008 the

number of unemployed people registered for the 4.5 million people, only the first of 44%. If you

like Chinese, like statistics, then the financial crisis in the United States the unemployment rate

of only 2.94% of the!

Second, compare The length of time unemployed. In 2008, the unemployed population in the United

States, there is 31.5% at 5 weeks to find new jobs; has 30% of the unemployed at 5 - 14 weeks to

find a new job; has 17.1 percent of the unemployed at 15 - 26 weeks find new jobs; unemployment

more than half a year only 21.4 percent. That is nearly 80% of the unemployed at six months to be

able to find a job. In China, most of the unemployed are more than half a year of people can not

find a job.

Third, compare the relief of the unemployed. Unemployment in the United States, and some units will

be given a certain amount of the wage compensation. If there are no government will be able to

receive unemployment benefits, in accordance with the provisions of the present, unemployment

benefits can I get more than half a year. Six months later, still can not find a job, they start to

enjoy the low-income (or income) of social security payments, such as housing, medical care and

their children to school has made the corresponding benefits. The United States in 2008 poverty

standard for the following annual income of 10,400 U.S. dollars (China for 683 yuan). In the United

States against the welfare of low-income groups have a number of as many as ten, such as a single

person's annual income of less than 13,524 U.S. dollars, and will be able to enjoy receiving food

stamps, and single-person income at 15,600 dollars (single-person poverty line 150%) The following

will also be offered a series of well-being. In 2008, the United States the average unemployment

benefits for around 1700 U.S. dollars, while the United States in 2007 the average monthly wage for

3368 U.S. dollars. That is to say, the United States unemployment benefits equal to the previous

year's average wage by 50%. Rather than the high proportion of Europe, equivalent to approximately

three times the Chinese. 2008, Beijing of unemployment benefits for the 502-611 million: Shanghai

for 410-550 yuan; Tianjin 480-520 million; Chongqing for 260-470 yuan. Separately for on-the-job in

2007 the average wages of workers (Beijing) 15-19%; (Shanghai) 14-19%; (Tianjin) 22-23%;

(Chongqing) 14-24%. Moreover, in our country is not registered as unemployed you, you will be able

to receive unemployment benefits is subject to various restrictions. First, it is necessary for

urban household; II are sufficient enough to pay the duration of unemployment insurance; three are

to be able to provide a reliable legitimate reason "to prove the unemployed"; are four places to

the unemployment insurance account to pay the money. While some places are now insured migrant

workers can receive unemployment benefits, but the amount was only 30-40% of urban accounts, about

once a month, only one two hundred.

Friday, my main reason for high unemployment

First, the excessive pursuit of "efficiency" results. Chinese near at such a historical period of

economic growth, labor jobs have decreased rather than increased the phenomenon has its objective

reasons, but the main reason was that China chose to give priority to efficiency, rather than

giving priority to employment development strategies, national policies are fully due. Well-known

American economist Arthur Cairns. Okun at its "Equality and efficiency", a book so that "the

pursuit of efficiency will inevitably give birth to a variety of real estate inequality, therefore,

between equality and efficiency, social faced with a choice. "reform and opening up 30 years ago,"

giving priority to efficiency with due consideration to fairness "in the mainstream of thought has

been dominated by the status of government decision-making also showed extremely reactive to

short-term behavior, the introduction of a series of economic policies, its subject is promote

rapid economic development and improve efficiency, especially in the pursuit of high GDP growth.

However, the high GDP growth has not brought about by high employment. GDP growth on employment

growth in Latin America continue to decline in power, from the last century 80's GDP growth by 1

percentage point each to boost employment growth 0.32 percentage point increase in average driving

jobs 2400000. To the 90's, GDP growth by one percentage point each and can only pull of employment

growth of around 0.13 percentage points, with an average increase of 700,000 driving jobs. Now,

less than 0.1 percentage points.

Natural because of the market mechanism to bias the efficiency at solving the employment mission so

only on visible only to rely on the Government's hand. However, the Government hand at giving

priority to employment and efficiency of the priority issues on the selection efficiency is,

therefore, our country's high unemployment rate and then the inevitable. While most of the world's

industrialized countries have opted for giving priority to employment policy objectives, countries

are combining their own political, economic and social realities have changed the past by simply

relying on the cash grant unemployed approach, while the pre-selection to prevent unemployment and

to promote employment of active labor policies. To Sweden as an example, Sweden's employment

strategy is to "every person in employment" or "full employment", which is Sweden over the past 40

years as a social welfare state has always been one of the principles. Sweden set up a National

Employment Council and the National Employment Office with 360, 60 special employment services and

90 vocational ability tests. Employment offices are the main functions of career counseling and

placement guidance. Sweden 0.9% of the GDP for the negative measures up, and put into 1.7% of GDP

on active labor market measures up. This makes Sweden in the years 1945-1991, saw the highest

unemployment rate of only 3.5%, one of the 20th century, the unemployment rate has been in a 70's

between 1.5-2.7%, the 20th century, the 80's average unemployment rate of only 2.5%. At the same

time, through the establishment of the employment security law, the prohibition of unfair dismissal

to protect employees. Again, add the United States imposed steel tariffs, because at the use of

Section 201, because the United States there are 150,000 steel workers, to ensure that their rice

bowls. Chinese home appliance industry in Europe has been anti-dumping, but also Western countries

to protect the performance of employment.

Although that "development is the last word," but if we really are "people-oriented", "governing

for the people", and taking into account the current condition of our country, employment is the

last word should be the last word. One hundred years, China's poverty-ridden and weak, rich and

powerful Chinese desire, selection efficiency and the pursuit of GDP growth also has its history is

reasonable. But must not allow the majority of vulnerable groups to bear the cost of economic

development, it is extremely immoral.

Second, focus on developing capital-intensive and technology-intensive industries. Employment is

the people's livelihood, the implementation of different economic development strategies, the

formation of a different model of economic growth, will bring about different employment effects.

Since the 80's, my Government believes that capital and technology-intensive industries belong to

the advanced productive forces, they actively encourage the development of capital and

technology-intensive industries, neglect and exclusion of labor-intensive industries at the expense

of employment to seek economic development. In fact, these three industries in the market economy

to adapt to the scope of its own, there is no advanced and backward. Labor-intensive industries

with a combination of capital-intensive industries can also be the same combination of

technology-intensive industries. Facts have proved that China's labor-intensive industries in the

international market also has a strong competitive edge.

Third, the size-fits-all "UPRONA country retreat" result. At "large and deregulating the small" and

"state-owned enterprises to withdraw from all areas of competition" policy, means that state-owned

enterprises, announced the death, all over the state-owned enterprises have to develop a timetable

for the death, in a very short period of time, regardless of the operating performance of have

carried out restructuring of state-owned enterprises, restructuring or bankruptcy, resulting in a

large number of laid-off workers. Change much after the change of system for private enterprises to

the workers of "buy-out length of service", the lifting of the labor contract, an average of 10,000

give money around "economic compensation" out of workers to society, on its own.

Fourth, China is in the working-age population, the rising period, the formation of lasting

enormous employment pressure. Performance for the working-age population or economic activity more

than population growth rate of total population growth.

Fifth, China is in large-scale industrial restructuring phase, the proliferation of laid-off

workers, belong to are continuing, long-term structural unemployment. Proportion of population

decline in agricultural employment, rural labor and the labor from the agricultural sector to

non-agricultural sectors and urban mobility, the formation of the employment pressure. The

secondary industry, especially manufacturing, the ability to absorb new labor force is declining.

National policies and the role of technological progress has destroyed many old jobs, and new

industries and new jobs have not yet formed.

Sixth, China is experiencing rapid economic growth of "capital deepening" process, especially the

state-owned industrial enterprises increased rapidly the degree of capital-intensive, not only to

absorb new labor force, but keeps a large number of surplus staff exclusion. "Eighth Five-Year

Plan" period, China's unprecedented high economic growth and high investment growth, but no

corresponding Driven, higher employment growth, employment growth elasticity coefficient reached

the lowest point in history. In turn, high economic growth mainly relies on capital investment,

contribute to the growth of labor inputs is getting smaller and smaller. This mode of economic

growth are inconsistent with China's basic national conditions.

Therefore, as a government should be required to ensure that national life and improve the quality

of national life in the first place, if only the pursuit of economic development and in disregard

of people's life, so that the development of the vast numbers of vulnerable groups is meaningless,

and the inevitable and runs counter to social development goals. Make sure that each member of

society free from the pain of hunger and poverty, it has to live with dignity, it is every

government's duty and obligations. At the same time, rapid economic development as a country of

change, appropriate high rate of unemployment is very natural thing, is absolutely no need to go

covert. In order to cover up the unemployment rate was done in accordance with the decision-making

is bound to make the unemployment rate is getting higher and higher, so that a large number of

registered unemployed persons not included in the Living in trouble.