Observation (CEACR) - adopted 2012, published 102nd ILC session (2013)

Employment Policy Convention, 1964 (No. 122) - China (Ratification: 1997)

Formulation and implementation of an active employment policy. The Committee notes the detailed information provided by the Government in September 2011 in reply to its previous observation. It notes the 12th Five-Year Plan for National Economic and Social Development, which sets out employment strategies based on the development of the industry and service sectors. The Committee also notes the adoption of the National Human Rights Action Plan of China (2012–15) which refers to, inter alia, the right to work and the right to basic living standards. The Government reports on the establishment of the Inter-Ministerial Joint Meeting System on Employment to ensure policy coordination and help promote employment. Tripartite dialogue has been strengthened to cope with the global financial and economic crisis and seek common development goals. In response to the crisis, measures taken by the Government to promote employment include boosting domestic consumption, reducing social insurance contributions of enterprises, and offering subsidized targeted training opportunities to workers, jobseekers and unemployed persons. The Government also reports that the employment situation has been stabilized by creating 11.68 million new jobs for urban residents, re-employing 5.47 million laid-off workers, and employing 1.65 million persons from groups with employment difficulties. The Committee notes that the urban registered unemployment rate dropped to 4.0 per cent in 2011 (as per IMF data) from 4.1 per cent in 2010 and 4.3 per cent at the end of 2009. The Committee invites the Government to continue to provide information in its next report on the formulation and implementation of an active employment policy with the involvement of the social partners and on the impact of the measures taken to generate productive employment (Articles 1, 2 and 3 of the Convention).

Impact of legislation on employment creation. The Government indicates that, in order to attain the objective of full employment, it implements active employment policies and incorporates such policies into legislation through the Employment Promotion Law. New legislation also provides for the adoption of measures aimed at increasing employment in the areas of tax, finance, social insurance, unemployment insurance and other matters. With respect to labour and social insurance policies, the Government indicates that it will take measures to gradually improve and implement flexible labour and social insurance policies that are compatible with flexible employment, including part-time employment, providing help and services to employees under flexible employment. The Committee invites the Government to continue to provide information on the impact and results achieved in terms of productive employment creation and the improvement of employment security for workers through legislation and related practice and implementation.

Vulnerable groups. The Government indicates that it attaches great importance to youth employment. The Committee notes that China is facing challenges with regard to the employment of graduates from institutions of higher learning and young migrant workers. The number of graduates has increased from 3.38 million in 2005 to 6.3 million in 2010. The Government indicates that it has formulated policies to promote employment for graduates, including plans to increase employment opportunities, a plan to guide business start-up and a plan of employment service and assistance. It reports that employment internships were provided to 1 million graduates with allowances paid by governments or employers, and that 450,000 graduates will benefit from the business start-up plan in the 2010–12 period. With respect to young migrant workers, the Government reports on measures easing their access to employment in urban areas, support measures to start up businesses, and vocational and technical training measures. It also reports on the measures to promote the employment of migrant workers based on the principle of fair treatment without discrimination. The Government indicates that it will improve management and overall planning of urban and rural areas, taking measures in accordance with the local conditions and providing guidance based on specific needs. Furthermore, the Committee notes the information on measures targeting the employment of women, including social security and vocational training subsidies, entrepreneurial trainings and measures to improve the maternity insurance system. The Government indicates that these measures have effectively promoted the employment of women. By the end of 2009, urban employers employed a total of 125.3 million persons, of which 46.785 million were women (37.2 per cent). It also provides data indicating that, from 2005 to 2009, public employment service agencies helped a total of 94.807 million persons obtain jobs, of which 44.514 million were women. With respect to persons with disabilities, the Government provides updated statistics indicating that 4.412 million persons with disabilities were employed in urban areas and 17.497 million in rural areas in 2010. The Committee also notes the information provided by the Government on measures to promote the employment of ethnic minorities. They include the formulation and improvement of employment policies, the increase of employment aid for college graduates of ethnic minorities facing difficulties in finding jobs, the development of special training activities and work programmes, and the increase in financial support. The Committee invites the Government to provide in its next report information on the impact of the measures taken in order to promote productive employment for vulnerable categories of workers. Please also include updated data on the situation and trends of the active population, employment, unemployment and underemployment disaggregated by sector, age, sex, in particular for vulnerable groups such as young persons, women, persons with disabilities, rural workers and ethnic minorities.

Ensuring re-employment of laid-off workers by state-owned enterprises. The Government reports that the unemployment insurance system has basically covered most laid-off workers of state-owned enterprises. It further reports that in 2008, following the implementation of the Employment Promotion Law, the proactive employment policies continued, expanding from focusing on addressing the re-employment of laid-off and unemployed persons of state-owned enterprises to focusing on addressing the overall plan of employment of various groups in urban areas. The Government indicates that this has expanded the scope of objects, extended the validity period of policies and its increased efforts. The Committee invites the Government to continue to provide information in its next report on this matter.

Consistency and transparency of labour market information. The Government reports that it has established a city-based labour market information network. Over 80 per cent of public employment service agencies have set up information systems and in some locations these networks have extended to rural areas. The Government further indicates that a decision was taken in 2010 to establish an employment information monitoring platform to track the employment and unemployment status of jobseekers. It is estimated that approximately five years will be needed in order for the information network to cover the whole country. Furthermore, in 2011 the Government decided to set up a national public recruiting information service platform in order to increase consistency and transparency of the labour market and help jobseekers obtain timely and accurate labour market information. The Committee invites the Government to continue to provide information on the progress made in order to obtain accurate employment data and how it is being used to formulate and review employment policies (Article 2).

Constructing a unified labour market. The Government indicates that it has abolished policies and regulations that restrict the rural labour force to be employed in urban areas and transregionally. It further indicates that it is steadily and proactively pushing forward the reform of the household registration system. The Committee notes that conclusions are to be drawn from the experiences in the pilot efforts for coordinating urban and rural employment, and the scope of the pilot efforts is to be expanded. It further notes that in 2010 public employment service agencies at all levels nationwide provided gratuitous employment service to migrant workers, distributed over 35 million employment information cards, held nearly 20,000 special recruitment fairs for migrant workers, recommended jobs to more than 23 million persons, of which 12.5 million succeeded in obtaining employment, and arranged for over 30.9 million workers to obtain employment abroad. The Committee invites the Government to provide further information on the measures taken to unify employment management and the results achieved by the employment services in providing the same level of services in the country. The Committee invites the Government to include in its next report an evaluation on how a balanced growth between economic development and employment has been achieved among the different regions of the country.

Strengthening employment services. The Government previously indicated that, in 2008, 99 per cent of the urban neighbourhoods and 80 per cent of towns had set up public employment services that provide assistance and job placement services. The Government reports in 2011 that 90 per cent of towns have set public employment services. Furthermore, the Committee notes that by the end of 2010, more than 10,000 private employment agencies operated in the country. The Committee invites the Government to provide detailed information on the operation of private employment agencies. It also invites the Government to continue to report on the achievements made in strengthening public employment services and regulating private employment agencies. Please also provide information on the measures taken to ensure cooperation between the public employment services and private employment agencies and measures that the Government is taking to encourage private employment services to improve the quality of their services in order for them to fulfil their employment promotion functions.

Promoting small and medium-sized enterprises. The Committee noted in its previous observation that 82 cities had been selected to pilot a new initiative aimed at promoting small and medium-sized enterprises. In its report, the Government indicates that it has made efforts to create entrepreneurial cities in 85 cities. It further indicates that it is conducting an assessment of the work performance of these entrepreneurial cities, evaluating the work completed and the actual results in the cities undertaking the tasks through information reviews, data comparisons and survey questionnaires. The Government also reports on measures to support entrepreneurship and promote small and medium-sized enterprises. These measures include reducing administrative barriers, enhancing entrepreneurial training, improving financial services to entrepreneurs and granting preferential tax rates to entrepreneurs and small and medium-sized enterprises. The Committee notes that the Government has set up a technology innovation fund which grants financial support to scientific and technological innovation projects. The Committee invites the Government to include in its next report information on the impact of measures promoting small and medium-sized enterprises with respect to employment creation.

Vocational training and education policies. The Committee invites the Government to include information in its next report on how the human resource development policies are coordinated with employment policies and on how the Government is strengthening the coordination between vocational institutions. It also invites the Government to report on how the local entities and social partners participate in the design and implementation of training policies and programmes.

Article 3. Participation of the social partners. The Government indicates in its report that more than 10,000 tripartite consultation organizations have been established at all levels across the country. It further reports that the 16th National Tripartite Conference of Labour Relations Coordination was convened in 2011. The conference adjusted the composition of the members of the State Tripartite Conference and its office; revised the Tripartite Conference System; reviewed the national harmonious industrial relations models of enterprises and industrial parks; and thematically studied the work to further put forward the implementation of special actions for the small business contract scheme, and the implementation of the collective contract scheme of the “Rainbow Programme”. The Committee invites the Government to continue to provide information on the consultations held with the social partners concerning the formulation and implementation of an active employment policy.

ILO technical cooperation. The Committee invites the Government to provide information in its next report on the results obtained through ILO technical assistance on the matters covered by the Convention and also on the results derived from the implementation of the Decent Work Country Programme (2006–10).