Employment basically stable, challenges remain

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China says the country's current employment situation is basically stable as more jobs are created. But officials from the Ministry of Human Resources and Social Security warn that China's recovery is not firmly established and that the country's job market could still be vulnerable.

China has been taking proactive measures to boost employment amid the global financial crisis. The Ministry says that around 7 and a half million new jobs were created in urban areas in the first eight months of this year. That means over 80 percent of the whole year's target has been fulfilled.

Meanwhile, the employment rate of new college grads stood at 68 percent for the first six months of 2009, basically unchanged from the same period last year. Migrant workers in China were hit hard by the global financial crisis. About 50 percent of migrant workers in the country, or 70 million people, returned home jobless before the Spring Festival. This was the result of the international economic uncertainty that forced the closure of factories in the country's coastal regions.

The ministry says that now many migrant workers have once again found jobs in cities. However, officials have warned against being overly optimistic.

Yin Weimin, Minister of Ministry of Human Resources & Social Security, said, "The international financial crisis has not yet bottomed out. There are uncertainties in the economic development of China. And the basis of China's economic recovery is not solid. Therefore, the employment situation is still facing grave challenges. "

Yin Weimin says the ministry will continue its proactive measures to create jobs, such as encouraging college grads to establish start-up businesses and improving employment services.

China is also striving to improve its social security system. New measures are expected to give basic medical insurance to over 90 percent of the population this year. In addition, a new pension scheme will make all rural residents able to enjoy a general pension after turning 60.

Hu Xiaoyi says with the new rural cooperative medicare and a new endowment insurance system already in place, rural residents in China are expected to receive more tangible benefits.