China's Labour and Social Security Minister Tian Chengping said in Beijing on Sunday that the country's employment situation is "very severe" this year, although the country has provided 51 million job posts in cities in last five years. Photo: Xinhua Photo

China's Labour and Social Security Minister Tian Chengping said in Beijing on Sunday that the employment situation will be "very severe" this year, even though China has generated 51 million jobs in urban areas in the past five years, State news agency Xinhua reported.

Speaking on the sidelines of the First Session of the 11th National People's Congress (NPC), Tian said that about 20 million new job seekers emerge in urban and rural areas every year, and China will have a large contingent of new labour market entrants for quite a long time.

However, cities and towns can only provide about 12 million jobs each year. Meanwhile, huge numbers of migrant workers are flowing into cities, Tian said.

Premier Wen Jiabao said in his government work report, delivered at the parliamentary session on Wednesday, that "providing adequate employment opportunities in China, which has the largest population in the world, is a daunting challenge."

"We must redouble our efforts to increase employment, a matter that is crucial to people's well-being," the premier said.

Some economists said that while tight monetary policy might curb what's been termed over-investment, it might also increase pressure on the labour market.

According to Labour Minister Tian, six measures would be taken to promote employment:

    -- implementing a job-creation strategy and prioritizing job generation in the course of social and economic development;

    -- improving active employment policies;

    -- encouraging job creation through start-up businesses;

    -- improving the employment service system for job-seekers;

    -- providing occupational training to resolve structural mismatches in the labor market;

    -- establishing an unemployment early warning system and striving to maintain stable employment.

According to Wen, China spent RMB66.6 billion renminbi/yuan (about $9.3 billion in the form of central government subsidies over the past five years to support employment programs. These programs had helped more than 10 million urban people get jobs and8 million rural workers find jobs in non-agricultural sectors per year on average.

The problem of finding new jobs for former state-owed enterprise staff had been basically resolved, and the work of incorporating basic cost of living allowances for laid-off workers into the unemployment insurance system had been completed, Wen said.

The urban unemployment rate in the past five years was lower than 4.3%, but the ministry has set the 2008 target at 4.5%.

Chinese female tycoon triggers controversy with "pro-rich" proposals

Xinhua also reports that Zhang Yin, the "empress of paper" once ranked as China's richest woman, has set off heated debate at the annual full session of the national political advisory body with three "pro-rich" proposals.

Some members of the 11th National Committee of the Chinese People's Political Consultative Conference (CPPCC), the top political advisory body, have criticized what they call her biased proposals at the session, which runs from March 3-14.

One of the proposals from Zhang, who is also a CPPCC National Committee member, is to amend the Labor Contract Law, which was put into effect on Jan. 1 this year, to exempt labor-intensive companies from signing permanent contracts with staff having more than 10 years' service.

Her second idea is for the personal income tax rate on those earning more than RMB100,000 renminbi/yuan (about $14,000) a month to be cut from 45% to 30%.

And third, she suggested that the government lift the duty levied on imported environmental remediation facilities for five to seven years.

"She is speaking for herself and people like her," said Shi Dingguo, a political advisor and former deputy head of the school of humanities of the Beijing Language and Culture University.

"She is rich, running a labor-intensive, polluting business that needs to import environmental remediation facilities," Shi said.

Zhang, 51, is the founder and board chairwoman of one of the world's biggest paper makers, Nine Dragons Paper Industries. She was named by the annual Hurun Report as China's richest woman in 2006, with a fortune estimated at 27 billion yuan.

"She should not do this," Shi said. "Being a CPPCC National Committee member, she should speak not only for herself but also for the public."

However, Zhang Yichen, another advisor and chief executive officer of the CITIC Capital, said it was understandable that a CPPCC National Committee member would raise proposals on familiar topics. "Of course, it's a question whether she speaks for herself for the whole industry," he said.

CPPCC member Jing Tiankui agreed that a political advisor should bear a stronger sense of social responsibility. But Jing also noted that it was good for Zhang to step up, speak out and get feedback. "It means the session is opener and more tolerant."

Ge Jianping, an advisor from the business world, said that he agreed with Zhang on an amendment to the Labor Contract Law. "Companies do feel pressure after the law was put into force. Many talked about this at the meetings."

"People talk frankly and get into heated discussions at panel meetings, even when officials from the State Council join us," he added.

"First of all, you have to tell the truth to fulfill the duty of a political advisor," said Li Dongyu, an advisor from northwestern Shaanxi Province.

Confrontation has been common at China's annual full sessions of the top legislature and political advisory body.

On Saturday, two political advisors addressed the plenary meeting, one from the trade union sector and the other from the industry and commerce.

Zhang Mingqi, deputy president of the All-China Federation of Trade Unions, upheld the Labor Contract Law and denied that it would increase costs for law-abiding employers.

However, Song Beishan, deputy chairman of the All-China Federation of Industry and Commerce, called for fostering small and mid-sized enterprises and avoiding measures that would deter them from hiring people while protecting employees' rights.

Xinhua says that in contrast with traditional bureaucrats who speak in a roundabout way, aggressive lawmakers and political advisors are winning public applause.

"It is necessary and justified to debate about a tiny thing only if it matters to public interests," the People's Daily said in an editorial.