China must push job creation as an even higher priority in setting economic policy, the government said yesterday, laying down rules for employers and officials to discourage potentially volatile sackings.
The directive from China's State Council, or Cabinet, was issued on the government website (www.gov.cn), and is Beijing's latest step in a campaign against faltering growth, rising joblessness, and signs of growing discontent.
Job shifts will still be dominated by the labour market, but the document suggests the government will take a bigger role in containing job losses and pushing projects to boost employment.
"Truly make employment work even more prominent and important, and strive to stabilise the employment situation," said the directive, which was dated February 3.
"In implementing macroeconomic and structural economic adjustment and making settings for major industries and projects, priority consideration must go to the impact on expanding employment."
China's economic growth slumped to an annual 6.8 per cent in the last quarter, dragging down the pace of expansion for all of 2008 to a seven-year low of nine per cent.
Officially, the urban unemployment rate is about four per cent. But that figure excludes migrant workers and farmers, and many economists say the real jobless rate is at least twice as high.
The ruling Communist Party is most worried about jobs for a torrent of rural migrant workers leaving farms and the six million university and college students who will graduate later this year. About 20 million rural migrants have lost their jobs as the nation's economic growth has slowed, a senior official said early this month. That number could expand.
One in five businesses in Guangdong province, the far southern export zone, may soon lay off more workers, an official survey showed, according to a local newspaper on Monday.
"Comprehensively encouraging employment growth and stabilising employment is extremely significant for protecting social stability and maintaining steady, relatively fast economic development," said the directive.
Employers will not be prevented from dismissing workers, but the directive laid out rules that are aimed at regulating layoffs.
Before cutting staff in businesses, employers must give 30 days' notice to state-run unions or all employees if they are going to cut 20 or more workers or 10 per cent or more of the total workforce. They must also submit a dismissal plan to local social security authorities.