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1. The Committee notes the Government’s report received in September 2002 which contains information pertaining to the matters raised in the 2000 direct request. The Committee also notes the progress made under the Memorandum of Understanding signed in May 2001 between the Ministry of Labour and Social Security of China and the Office in order to promote, inter alia, strong social policies, justice and democracy in the field of employment. The China Employment Forum has been convened for April 2003 to provide an opportunity to enlarge on the dimensions of a sound employment policy and to consider implementation issues. The Committee requests the Government to include in its next report information on the action taken as a result of the advice received from the Office in designing and implementing an active employment policy within the meaning of the Convention (Part V of the report form).

2. Article 1, paragraph 2(a) and (b), of the Convention. The Government states in its report that as a means of continuing to develop the labour market and to promote vocational training, it has improved the professional skills and quality of the labour force. To further its objective of achieving an adequate level of employment, the Government is paying particular attention to the re-employment of workers laid off by state-owned enterprises and the unemployed. The Committee notes that the registered urban unemployment rate had increased to 3.5 per cent (6 million persons) at the end of 2000 and is expected to reach about 5 per cent within the next five years. In addition, another 3.9 per cent of the urban labour force (6.57 million workers) were laid off from state-owned enterprises and are seeking re-employment. Estimated underemployment in rural areas was 150 million workers, many of whom are migrating to urban areas in search of employment, often in the informal economy. Nevertheless, in 2001, China’s GDP rose by 7.1 per cent compared to 2000 (and 7.3 per cent in the first half of 2002). The Committee asks the Government in its next report to describe how the employment policy objectives are related to other economic and social objectives. Please supply information on measures taken to create employment by the promotion of entrepreneurship of small and medium-sized enterprises, including township and village enterprises.

3. The Government emphasizes in its report that a series of major advances were made to develop a standardized, scientifically based and modernized labour market, mainly involving networking, service functions, market management and operational mechanisms. At the end of 2001, information networks and labour market monitoring centres had been established in 17 provincial departments, analytical reports on labour market information related to labour supply and needs were being issued to the public on a regular basis in 91 cities and pricing information to guide wage-setting was being publicized in 87 cities. Some 26,793 employment agencies have provided employment services to 18 million persons. The Committee would appreciate further information on the progress made in improving the labour market information system and the use of employment services in order to ensure the better matching of labour supply and demand. The Committee asks the Government in this connection to include information on the measures taken  to coordinate education and training policies with prospective employment opportunities. Please also provide information on the results of the programmes carried out to facilitate re-employment, for instance, under the initiative to train "tens of millions in three years".

4. The Government indicates in its report that a pilot project to promote urban employment in three cities (Baotou, Jilin and Zhangjiakou) was set up to explore ways of encouraging laid-off workers to set up their own businesses by providing training in business initiation and financial support in the form of small loans. Please continue to provide information on the impact of the initiatives taken to support job creation by private entrepreneurship. The Government may deem it useful to refer to the provisions of the Job Creation in Small and Medium-Sized Enterprises Recommendation, adopted by the Conference in June 1998.

5. Article 5, paragraph 2(c). The Government indicates in its report that activities to highlight achievements by women were carried out in collaboration with women’s associations, such as the All-China Women’s Federation, all of which were helpful in ensuring equality and avoiding discrimination in employment. The Committee refers to paragraph 1 of this direct request and asks the Government to continue to provide information on measures taken to ensure that race, colour, religion, political opinion, national extraction or social origin are not permitted bases for discrimination in counselling people on employment options, in providing education and training, or in hiring practices. It also requests that the Government include in the next report information such as statistics on lay-offs and subsequent placement in freely chosen and productive jobs of persons falling within these categories.

6. Article 2. The Committee asks the Government to continue to supply information on the situation, level and trends of employment, unemployment and underemployment in China both in the aggregate and as they affect other vulnerable categories of workers such as young persons, older workers, rural workers and displaced state-owned enterprise workers. Please indicate how the labour market data collected have been used as a basis for deciding and reviewing measures of employment policy within the framework of a coordinated economic and social policy.

7. Article 3. The Government indicates in its report that the process of developing and implementing employment policies has always been carried out in consultation with representatives of the groups concerned by the policy measures, including trade unions and employers’ associations. The Committee highlights that this important provision of the Convention requires the involvement in consultations of Government authorities and of representatives of the persons affected by the employment policy measures to be taken. The aim of the consultations is to take fully into account their experience and views and secure their full cooperation in formulating and implementing employment policies. Representatives of the persons affected must include representatives of employers’ and workers’ organizations and also representatives of sectors of the economically active population, such as the rural and informal sectors. In view of the impact of the economic and social measures being taken by the Government on workers displaced from the rural sector and from state-owned enterprises, the Committee would appreciate receiving information on any consultations envisaged in those sectors on the matters covered by the Convention in the next report.