China has pushed through a series of emergency measures to protect jobs and stabilize the economy in the wake of the factory closures and mass layoffs that have swept the country over the last few months. Beijing's top labour official, Yin Weimin, told a press conference on 20 November that the employment situation was grim and could get worse before the central government's four trillion yuan economic stimulation package kicks in next year. "The global economic crisis is picking up speed and spreading from developed to developing countries and the effects are becoming more and more pronounced here. Our economy is facing a serious challenge," Mr Yin, the minister of Human Resources and Social Security said. Mr Yin's comments came after the ministry conducted a survey of the employment situation in Guangdong, Shanghai, Chongqing, Sichuan, Hunan and Zhejiang, assessing in particular the flow of migrant workers. On 17 November, the ministry issued a notice urging local governments to postpone raising the minimum wage, allow some service orientated companies to adopt flexible working hours and pay, and consider lowering social security premiums. Local governments should also ensure that at least 50 percent of those unemployed migrants who had been employed locally for more than six months are registered as unemployed. Previously, only workers with urban residency could register as unemployed. However, social security and subsistence payments in many regions are already much lower than the minimum wage and can not sustain unemployed workers, particularly those with families, for very long. The ministry also urged local governments to introduce measures to reduce wage arrears and regulate staff layoffs. The labour department in Guangdong has already strengthened its supervision of enterprises with economic difficulties, those initiating closure, and those with wage arrears of over one month. Particular emphasis has been placed on foreign owned processing industries and labour intensive factories. Moreover, the province will set aside 540 million yuan to subsidize small and medium-sized enterprises, and grant another 200 million yuan in tax rebates for labour-intensive, export-oriented enterprises. Shanxi and Chongqing have also introduced measures to control layoffs. ...
"The global economic crisis is picking up speed and spreading from developed to developing countries and the effects are becoming more and more pronounced here. Our economy is facing a serious challenge," Mr Yin, the minister of Human Resources and Social Security said.
Mr Yin's comments came after the ministry conducted a survey of the employment situation in Guangdong, Shanghai, Chongqing, Sichuan, Hunan and Zhejiang, assessing in particular the flow of migrant workers. On 17 November, the ministry issued a notice urging local governments to postpone raising the minimum wage, allow some service orientated companies to adopt flexible working hours and pay, and consider lowering social security premiums. Local governments should also ensure that at least 50 percent of those unemployed migrants who had been employed locally for more than six months are registered as unemployed. Previously, only workers with urban residency could register as unemployed. However, social security and subsistence payments in many regions are already much lower than the minimum wage and can not sustain unemployed workers, particularly those with families, for very long.
The ministry also urged local governments to introduce measures to reduce wage arrears and regulate staff layoffs. The labour department in Guangdong has already strengthened its supervision of enterprises with economic difficulties, those initiating closure, and those with wage arrears of over one month. Particular emphasis has been placed on foreign owned processing industries and labour intensive factories. Moreover, the province will set aside 540 million yuan to subsidize small and medium-sized enterprises, and grant another 200 million yuan in tax rebates for labour-intensive, export-oriented enterprises. Shanxi and Chongqing have also introduced measures to control layoffs. ...
