China Issues White Paper on Labor, Social Security

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Last updated at: (Beijing Time) Tuesday, April 30, 2002

China Issues White Paper on Labor, Social Security

The Information Office of the State Council issued Monday a white paper entitled "Labor and Social Security in China".
With about 15,000 Chinese words, the white paper consists of four parts, namely Overall Stability in Employment Situation, Formation of New Labor Relations, Establishment of a Social Security System and Development in the Early Period of the 21st Century.

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The Information Office of the State Council issued Monday a white paper entitled "Labor and Social Security in China".

The white paper reviewed the tremendous efforts and achievements China has made to guarantee citizens' right to work and social security while building and perfecting the socialist market economy since late 1970s.

The 15,000-word paper contains four parts, namely Overall Stability in Employment Situation, Formation of New Labor Relations, The Establishment of a Social Security System, and Development in the Early Period of the 21st Century.

It noted that the right to work and enjoy social security is a fundamental right of citizens, having a direct bearing on their vital interests.

As the most populous and largest developing country in the world with a relatively low level of economic development, China faces an onerous task of promoting its work in this regard.

The white paper said that proceeding from China's actual conditions, and in accordance with the Constitution of the People's Republic of China and the Labor Law of the People's Republic of China, the Chinese government has made remarkable achievements in ensuring its citizens' right to work and enjoy social security, and in improving labor and social security management and services.

Immediately after the founding of the People's Republic of China in 1949, the Chinese government took a series of effective measures, successfully solving the serious problem of unemployment left over by the old China and ensuring the people's basic livelihood.

Under the planned-economy system, China adopted highly concentrated employment, wage and labor insurance systems, which played a positive role in making comprehensive arrangements for employment, guaranteeing the livelihood of employees, and promoting economic construction and social stability at that time.

However, with the progress of history, the old labor and social security system had become unadaptable to the requirements of economic and social development.

China has adhered to the policy of reform and opening-up, with the focus on economic construction, and has gradually stepped onto the road of establishing a socialist market economy system since 1978. And as a result, labor and social security undertakings have developed rapidly.

The white paper said that by rationally readjusting the employment structure, increasing overall employment and setting up a market-oriented employment mechanism, the Chinese government has brought about a basically stable situation in employment.

By the end of 2001, the country's population had reached 1.27627 billion (excluding the populations of the Hong Kong and Macao special administrative regions and Taiwan Province), and 730.25 million people were employed, accounting for 77.03 percent of the total labor force.

Employees in urban areas accounted for 32.8 percent of the total, and those in rural areas for 67.2 percent. The unemployment rate on record in urban areas was 3.6 percent, according to the white paper.

The white papers said that China commits itself to the maintenance of harmonious and stable labor relations. It has basically shaped up a new type of labor relations in consonance with the socialist market economy by reforming the wage and income distribution system and bettering the labor standard system.

China has reformed and perfected its social security system to make it benefit most urban employees and retirees. The minimum living standard security system has been extensively established in cities and is being promoted in rural areas.

After years of exploration and practice, a sound labor and social security system that corresponds with the socialist market economy system has been initially formed.

Entering the 21st century, China has embarked on a new development stage, the stage of starting the full-scale construction of a comparatively well-off society and accelerating modernization.

The major goals of China's labor and social security efforts at the beginning of the new century are promoting employment, protecting employees' rights and interests, coordinating labor relations, raising people's incomes and improving social security.

Based on the principles of mutual respect, equality and mutual benefit, the Chinese government actively participates in international labor affairs, the white paper noted.

In the field of labor and social security, China has conducted fruitful exchanges and cooperation with many countries and international organizations, such as the International Labor Organization, United Nations Development Program, World Bank and Asian Development Bank.

China has played a positive role in the international community in promoting employment, eliminating poverty and protecting the legal rights and interests of workers, according to the white paper.

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