Human Resources and Social Security Minister Yin Weimin said the employment situation may face more difficulties in the first quarter of 2009 before improving in the second quarter, Xinhua reported.

The minister told reporters the worsening global economic situation has hit Chinese employment since October, the state-run news agency said.

He said he expects the situation to improve in the second quarter of next year when government steps to boost domestic demand take effect.

Yin, commenting on recent labor unrest in the country, said the problem remains the "top concern" of the government, Xinhua said.

Yin said the overall employment situation this year has remained stable, noting China's jobless rate in the first 10 months of 2008 was 4 percent, well below the government's efforts to keep it at 4.5 percent or lower for the whole year. He said the number of new employees in the 10-month period stood at 10.2 million, higher than the annual target of 10 million.