Circular of the State Council on Further Promoting Employment and Re-Employment
Circular of the State Council on Further Promoting Employment and Re-Employment
Circular of the State Council on Further Promoting Employment and Re-Employment
Guo Fa [2005] No.36
November 4, 2005
The people's governments of all provinces, autonomous regions and municipalities directly under the Central Government and all ministries and commissions as well as all the affiliated institutions of the State Council,
Employment has a vital bearing on the people's livelihood and is an important content in the construction of a harmonious socialist society. The CPC Central Committee and the State Council have attached great importance to the work of employment and re-employment. We have distributed the Circular on Further Promoting the Re-employment of Laid-off Workers (Order No. 12 [2002] of the CPC Central Committee) in 2002 and have, putting the focus on solving the re-employment issue of laid-off workers of the state-owned enterprises, formulated the positive policies for employment and have held the national meeting to map out the work of employment and re-employment for 3 consecutive years. All the regions and the relevant departments have carried out an earnest implementation and all the social associations have played an active role therein so that all kinds of supporting policies for employment and re-employment have been carried into effect, the market-oriented employment mechanism has been further improved, the employment level has been considerably elevated, a large number of laid-off or unemployed workers have realized re-employment, which plays an active role in promoting the economic development, further carrying out the reform of the state-owned enterprises as well as safeguarding the stability of the society. However, we should also be aware that the basic structure of an oversupply of work force can not be changed for a comparatively long period. In the following few years, the work focus of employment and re-employment shall be put on the re-employment of laid-off workers as left over by the system transition as well as the allocation of employers due to any close-down or bankruptcy of enterprises. In the meanwhile, we should continue to do a good job in the employment and re-employment of graduates of colleges and universities, rural migrant workers and the farmers whose land has been requisitioned by the state. In order to further do a good job in the work of employment and re-employment, we hereby notify the relevant issues as follows:
I. Further Clarifying the Targets and Tasks and Creating More Jobs through Diversified Channels
1. The guiding principles for the work of employment and re-employment shall be as follows: we should, according to the scientific concept of development as well as the requirements of constituting a harmonious socialist society, carry into effect the 11th 5-year period plan for the national economy and the social development, attach greater importance to the issue of employment in the economic and social development, further implement and carry into effect the guidelines of "workers choose their own jobs, the market regulates employment and the government promotes employment" and, at the same time as putting the focus on resolving the re-employment issue as left over by the system transition, we should make efforts to do a good job in the employment of new work force in urban areas as well as in the transfer of the employment of rural abundant laborers, arrange the employment in the urban and rural areas in an overall way as well as elevate the quality of laborers in a step-by-step manner and explore a long-term mechanism to promote employment in the context of the market economy.
2. The major tasks of the work of employment and unemployment are as follows: we should basically solve the unemployment problem as left over by the system transition, put the focus on doing a good job in the re-employment of laid-off and unemployed workers of the state-owned enterprises or collective enterprises and the re-employment of those personnel who require the allocation due to the close-down or bankruptcy of the state-owned enterprises, solidify the work achievement of re-employment and promote the stability of employment. We should make efforts to do a good job in the employment of new work force in the urban areas and actively promote the employment of graduates from colleges and universities and should, at the same as creating more jobs, make efforts to elevate the occupational skills as well as the ability to start business. We should improve the employment environment for rural laborers to seek job in cities and positively promote employment in the rural and urban areas as a whole. We should promote the regulation of employment and control the number of urban registered unemployed persons within a reasonable scope and lower the number of long-term unemployed persons. We should promote the legal-system construction for employment, and gradually establish an interactive mechanism between employment and social and labor security.
3. According to the Central Task of the Economic Development, Creating More Jobs through Diversified Channels and Making Every Attempt to Boost Employment
A. We should stick to the principles of resolving the problem of unemployment in the process of development and make efforts to realize a sound interaction between the promotion of economic increase and the boosting of employment. We should combine the deepening of reform, promotion of development, adjustment of structure and boosting of employment in an organic manner and should, when formulating any economic and social policy concerning the overall situation or determining any large construction project, take into account the boosting of employment as an important factor and should, at the same time as putting the focus on elevating the competitiveness, establish an economic structure and growth mode conducive to boosting employment, analyze the impact of any change of the domestic or overseas economic situation on employment and actively adopt the relevant countermeasures.
B. We should carry into effect the guidelines of and policies for encouraging, supporting and guiding the development of the non-public sectors of the economy such as individual industrial and commercial households and private business, earnestly implement the policies and measures of the state on the development of the tertiary industry and the service industry, and broaden the channels for employment in the development of the tertiary industry as well as of the diverse forms of ownership.
C. We should attach importance to the development of labor-intensive industry and small or medium- sized enterprises with comparative advantages, and extend their capacity for admitting employment. We should formulate the relevant supporting policies for boosting the employment in those industries with a large capacity for admitting employment as well as with market demand.
D. We should promote the trans-regional labor service cooperation and labor service export. We should encourage the exploitation-based cities and isolated industrial & mining areas to develop the continuing industry according to the market demand so as to guide the transfer of laborers.
E. We should encourage laborers to realize employment by diversified means, accelerate the improvement and implementation of such policies regarding labor relationship, wage payment and social insurance for flexible employment so as to provide help and services for those personnel who may be employed in a flexible manner.
F. We should insist on a sound development of the urban and rural economy, adjust the rural economic structure, accelerate the construction of small towns and guide and organize the rural work force to transfer to the non-agricultural industries and migrate to work in the urban areas in an orderly manner.
II. Further Improving and Carrying into Effect the Policies for Re-employment so as to Promote the Re-employment of Laid-off or Unemployed Workers
4. For any laid-off or un-employed worker of a state-owned enterprise who has both the ability and desire to work, any person that shall be allocated due to the close-down or bankruptcy of a state-owned enterprise, or any laid-off worker of a collective enterprise as established by a state-owned enterprise (hereinafter referred to as a large collective enterprise subject to a factory) or any other urban registered unemployed person who enjoys the minimum living costs for urban citizens and has been unemployed for more than 1 year, the Preferential License for Re-employment shall be issued thereto and the relevant policies for support shall be provided.
A. Encouraging Unemployed Personnel to Find Their Own Jobs and Start Their Business on Their Own Initiative
Any person that engages in the individual industrial and commercial operation upon the strength of Preferential License for Re-employment (except for those industries as restricted by the state) may enjoy the policies for deduction or exemption of business tax, city maintenance and construction tax, educational surtax and individual income tax in proper sequence within a prescribed quota as well as be exempted from all kinds of administrative fee charges regarding management, registration and license.
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