China plans 45 million new jobs by 2015

BEIJING, Feb. 9 (UPI) -- China says it plans to create 45 million jobs and bring its urban jobless rate below 5 percent in three years even as it faces slower economic growth.

The forecast is contained in the Employment Growth Plan (2011-15). The document promises favorable policies to encourage small- and medium-sized enterprises to generate more jobs.

The country's job situation is expected to become complicated because of growing structural problems with labor supply not meeting market demand, the Global Times reported Thursday.

China's economy is slowing partly because of the global crisis that has reduced demand for Chinese goods. Official figures show China's GDP expanded by 9.2 percent in 2011 year-on-year, down from 10.3 percent in 2010. Further slowdown is expected this year.

Global Times reported 57.71 million jobs were created in urban areas, and 45 million people in the rural surplus labor force were transferred to new jobs in cities between 2006 and 2010.

"China now still maintains relatively fast growth compared with other economies in the world, and is capable of generating 45 million new jobs by 2015," Professor Yao Yuqun at Renmin University of China told the the Chinese newspaper.

The plan has set up a $2.4 billion development fund to aid the growth of the troubled small enterprises.

The plan also pledged to maintain an average 13 percent growth annually in the nation's minimum wage.

It also stressed the need to address the deteriorating job situation facing university graduates. It is estimated there will be 6.8 million college graduates this year.