First, the government would enact favorable policies to encourage and support the development of labor-intensive industries, small and medium-sized companies, the non-public sector of the economy and the service industry to promote employment.

Second, it would create a favorable policy environment for innovative businesses in terms of tax and business administration.

Third, the government would check on the implementation of the Law on Employment Promotion, which aims to promote fair employment and provide employment assistance, as well as other policies related to employment.

Fourth, the government would bring into full play unemployment insurance to promote employment, guarantee jobs and encourage companies to have stable employment levels.

Fifth, it would provide free employment services to laid-off workers in a bid to facilitate reemployment.

Sixth, it would provide employment assistance in earthquake-stricken areas, and provide and create more job opportunities for them.

The China Business News said these measures would promote job creation at present as well as exert a far-reaching influence on the country's future employment situation.

Expanding the service industry

At the "Merchants Securities 2008 Forum" in Beijing on October 29, Xu Xiaonian, an economics researcher at the China Europe International Business School, said encouraging the development of the service industry was the key to resolving the country's employment problems. In the three decades since China adopted its reform and opening-up policy in 1978, jobs provided by the manufacturing industry have accounted for 25 percent of the country's total available jobs. This indicates that the manufacturing industry cannot effectively create new job opportunities, Hu said. As a result, a large number of migrant workers from rural areas have gone to work in the service industry.

But the development of China's service industry lags behind those of other major economies. In 2007, the service industry contributed less than 40 percent to China's GDP, but 50 percent in India, 65 percent in Japan, and more than 80 percent in the United States.

"A 3-percent GDP growth in developed countries will resolve all employment problems," Xu said. "Our GDP grows 10 percent a year, but why are we still under tremendous employment pressure? That is because our economic structure has long been distorted. We hope that our policymakers can enact more favorable policies for the service industry instead of the traditional manufacturing industry to spur the job market."

If China's service industry reached the same level of development as in Japan and the United States, it could achieve the government's goal of full employment on the basis of small GDP growth, Hu said.