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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 shall 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 employees due to any close-down or bankruptcy of enterprises. In the meanwhile, we shall 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 shall, 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 shall 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 shall 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 intensify the stability of employment. We shall 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 shall, at the same as creating more jobs, make efforts to elevate the occupational skills as well as the ability to start business. We shall 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 shall intensify 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 shall intensify the legal-system construction for employment, and gradually establish an interactive mechanism between employment and social and labor security. (3) Focusing on the economic development, we shall expand the employment in multi channels with every mean: 1. We shall 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 shall combine the deepening of reform, promotion of development, adjustment of structure and boosting of employment in an organic manner and shall, 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 shall, 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. 2. We shall 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. 3. We shall 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 shall 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. 4. We shall promote the trans-regional labor service cooperation and labor service export. We shall 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. 5. We shall 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. 6. We shall 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 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. 1. Unemployed personnel shall be encouraged to find their jobs and/or start 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. The term for the above-mentioned person to enjoy the foregoing policies shall not be longer than 3 years at the most. For any person who is subject to the examination of tax deduction and exemption by the end of 2005 within the valid term for tax deduction and exemption, the aforesaid policies shall be enforced within the remnant period. The local people's governments at all levels as well as the relevant departments shall further do a good job in solving the business places for those personnel who hunt their own jobs and start their own business in an overall manner. Where any person holding the Preferential License for Re-employment or any urban ex-serviceman who has been demobilized and transferred to civilian work fails to raise sufficient funds through self-funding, a small amount guarantee loan may be provided with a quota of more or less than 20,000 yuan. The term of a loan shall not exceed 2 years. An extension of term may be granted for once if needed. Where any laid-off workers conduct partnership operations or organize themselves for employment, the size of a loan may be increased based on the number of people and their operational projects. For any loan as involved in projects of moderate profit, the interest shall, based on facts, be subsidized in full amount by the state treasury (but interest as incurred in the extension period shall not be subsidized). The specific projects shall be determined by the people's governments of all provinces, autonomous regions and municipalities directly under the Central Government according to the real situation and shall be reported to the Ministry of Finance, the Ministry of Labor and Social Security and the People's Bank of China for archival filing. Where any other urban registered unemployed person applies for small amount guarantee loans for his projects of moderate profits, the fiscal department shall provide an interest discount of 50% (the state treasury and the local fiscal department shall bear 25% respectively). 2. Enterprises shall be encouraged to open more job positions. As to commercial enterprises, service enterprises (except for those industries as restricted by the state) and any processing enterprise in employment service enterprises as well as any small processing-featured enterprises in a residential district, for those persons who are newly employed upon the strength of the Preferential License for Re-employment on new posts in the current year, where a labor contract with a term of more than 1 year is concluded and the social insurance premiums thereof are purchased, the relevant business tax, city maintenance and construction tax, educational surtax and individual income tax within the corresponding term shall be deduced or exempted within a quota in a proper sequence according to the number of the persons actually employed. The term to enjoy the foregoing treatment shall not exceed 3 years at the most. For any enterprise that is subject to the examination of tax deduction and exemption by the end of 2005 within the valid term for tax deduction and exemption, the aforesaid policies shall be enforced within the remnant period. In the meanwhile, for the foregoing commercial enterprises or service enterprises herein, the subsidies for social insurance shall be granted within a relevant period, the maximum term of which shall be no longer than 3 years. The standards for the social insurance subsidies shall be calculated according to the premiums of old-age insurance, medical treatment insurance and unemployment insurance that an enterprise shall purchase for its employees as recruited. The premiums of old-age insurance, medical treatment insurance and unemployment insurance that shall be paid by an individual shall be borne by the employee himself. For any enterprise that is subject to the examination of the social insurance subsidies by the end of 2005 within the valid term for enjoying the relevant subsidies, the aforesaid policies shall be enforced within the remnant period. For any labor-intensive small-sized enterprise that meets the requirement of loaning, where the persons who are newly employed upon the strength of the Preferential License for Re-employment on new posts constitute more than 30 % of the total number of incumbent employees, where a labor contract with a term of more than 1 year is concluded, the loan ratio shall be determined in a reasonable manner according to the number of employees as actually recruited and shall be limited to a maximum amount of RMB 1 million yuan. The fiscal discount, subsidies for commissions of the handling bank and subsidies for any loss of NPL shall be implemented according to the relevant provisions as clarified. 3. Employees with flexible employment shall be encouraged to stabilize. For any person in the group of "4050" (a female who is more than 40 years old or a male who is more than 50 years old; the cut-off time for computing ages shall be determined by all regions respectively; and the end of 2007 shall be set as the deadline) who has been employed upon the strength of the Preferential License for Re-employment in a flexible manner and applies for employment and the purchase of social insurance, a certain amount of social insurance subsidies shall be granted within a term up to 3 years. (5) Any person who has difficulties in employment and holds the Preferential License for Re-employment (including: any laid-off person of a state-owned enterprise, any laid-off employee of a large collective enterprise subject to a factory or any "4050" person among the persons who require allocation due to the close-down or bankruptcy of a state-owned enterprise; or any long-term unemployed person who enjoys the minimum living costs of urban citizens and who has real difficulties in employment) may be defined as the major objects for employment assistance and the relevant policies for support shall be provided: 1. Any person who has difficulties in employment shall be given priority to a post of public welfare, in which the government has invested for development. Where an enterprise employs any person who has difficulties in employment on any post of public welfare and concludes a labor contact with a term of more than 1 year, the social insurance subsidies shall be granted to the enterprise within the relevant term according to the number of persons employed. The standards for the social insurance subsidies shall be calculated according to the premiums of old-age insurance, medical treatment insurance and unemployment insurance that the enterprise shall purchase for its employees as recruited. Where any of the forgoing " 4050" persons has worked on a post of public welfare for more than 3 years, the term for the social insurance subsidies may be extended accordingly (the funds as required by any social insurance subsidy with a term of more than 3 years shall be solved by the local fiscal department), Any social insurance subsidy that is subject to an examination by the end of 2005 within its valid term shall be implemented according to the foregoing policies. 2. A region may, based on the real situation, provide proper post subsidies according to the actual work to a person with difficulties in employment on the post of public welfare. The standards for subsidies shall be determined by the local people's government and the funds as required shall be solved by the local fiscal department. (6) A region shall, according to the principles of territorial administration, further do a good job in the work of re-employment of laid-off and unemployed personnel in the enterprises under central administration within their jurisdictions. it shall incorporate the laid-off and unemployed personnel of these enterprises into the local work planning for re-employment and carry it into effect in an overall manner. For any laid-off and unemployed person of an enterprise under central administration, the Preferential License for Re-employment shall be verified and issued in a timely manner, the policies for re-employment shall be carried into effect and the funds as required shall be solved by the local fiscal department in an overall manner. (7) We shall effectively intensify the administration of issuance and use of the Preferential License for Re-employment. We shall strictly implement the procedures for examination and issuance of the Preferential License for Re-employment so as to prevent any one from practicing fraud or collecting the Preferential License for Re-employment in any other's name. Anyone who rents, transfers or forges any Preferential License for Re-employment shall be subject to severe treatment. All the relevant departments shall intensify communications and coordination, establish a system for the exchange of re-employment information on laid-off and unemployed personnel as well as assistant investigation, and shall, after providing the relevant policies for support, make indication on the Preferential License for Re-employment in a timely manner and revoke the Preferential License for Re-employment of a person who has handled the formalities for retirement in a timely manner. The Preferential License for Re-employment shall be applicable within the scope of the province (autonomous region or municipality) where it is verified and issued. The specific measures shall be formulated by the people's government at the provincial level. (8) A region may, according to the real situations, extend the scope of application for the foregoing policies (except for the policies for tax levy) to the laid-off and unemployed personnel of any other urban collective enterprises. The funds as required shall be solved by the local fiscal department. III. PROMOTING THE URBAN AND RURAL EMPLOYMENT IN AN OVERALL MANNER, IMPROVING THE SERVICES FOR EMPLOYMENT AND INTENSIFYING THE OCCUPATIONAL TRAININGS (9) We shall establish an organizational system for the services and administration of employment that covers the urban and rural areas so as to administer the urban and rural labor resources as well as their employment in an overall manner. We shall do a good job in the employment work of laid-off and unemployed personnel as well as new urban laborers in an overall manner, earnestly carry into effect the relevant policies for the employment of graduates from colleges and universities and ex-serviceman who have been demobilized and transferred to civilian work and intensify the relevant services for employment and occupational trainings. We shall improve the employment environment for migrant workers who seek jobs in cities, abolish the restrictions on the migration of rural work force into cities or their work in different regions and improve the policies and measures for ensuring the legitimate interests and rights of migrant workers to seek jobs in cities or work in different regions. The pilot work of the integration of the urban and rural labor markets shall be carried out in any region with mature conditions. (10) We shall improve the public service system for employment. We shall, according to the requirements of institutionalization, specialization and socialization, advance the services for employment with a human-oriented value and elevate the quality and efficiency of the public services for employment. The institutions that provide public services for employment shall provide free-of-charge services of job introduction to those personnel holding the Preferential License for Re-employment, other urban registered unemployed personnel and rural migrant workers who have been registered in cities to seek jobs. We shall develop and regulate all kinds of special occupation intermediary institutions and the socialized service organizations for labor service dispatch, occupation consulting and guidance as well as services for providing employment information. We shall encourage all kinds of occupation intermediary institutions to provide creditworthy and effective services for employment of urban and rural laborers. We shall improve the subsidy policies for job introduction, establish a mechanism that links subsidies with service performance and grant subsidies for all kinds of occupation intermediary institutions that provide free-of-charge services for job introduction. (11) We shall intensify the construction of the information system of the labor market. We shall, according to the overall requirements of the construction of the "Gold Security Project", carry out a uniform planning for the construction of the information system of the labor market and promote it in an overall manner. We shall, based on the central tasks of the employment work as well as the requirements of serving objects, optimize the procedures for operation and gradually realize the whole-course information in employment services as well as in the business operation of unemployment insurance. We shall set up the network among all the public service institutions for employment at all levels, analyze and publicize the information on the supply and demand of jobs as well as the information on wages, improve the functions of online job introduction so as to provide convenient and efficient information services for job applicants and the employing entities, and elevate the efficiency of balancing the supply and demand of the labor market. (12) We shall intensify the construction of work platform for social and labor security in a community of a residential district (town) and bring into full play the basic functions thereof in promoting the employment and re-employment as well as the socialized administration of retired persons. We shall, on the basis of the work platform for social and labor security in a community of a residential district (town), establish an aid system for employment and re-employment, provide focused help for those with difficulties in employment and provide the relevant employment services with aim and aid those people on the posts of public welfare. The institutions in charge of social and labor security in a residential district or village or town shall further improve their service functions, improve their work means and intensify their basic administration. We shall intensify the construction of the work contingents of social and labor security in communities, intensify the occupational trainings, elevate the work quality and ensure the work funds. We shall summarize the experiences of some areas on building up creditworthy communities, and, in combination with the establishment of an individual credit system, explore an interactive mechanism for the establishment of a creditworthy community, trainings for business setup and small amount guarantee loans and create the relevant conditions for laid-off and unemployed personnel to hunt jobs or to set up their own business. (13) We shall widely mobilize the educational and training resources in the whole society and carry out multi-leveled occupational trainings in diversified forms for urban and rural laborers, actively promote the trainings for business setup and elevate the ability of laborers to hunt jobs or to set up their business. For any personnel holding the Preferential License for Re-employment, any other urban registered unemployed personnel as well as the rural migrant workers who seek jobs in cities, a one-off subsidy for occupational trainings shall be provided. We shall, through qualification accreditation, determine a group of educational training institutions that provide high-quality trainings and have good performance on promoting employment as designated institutions. We shall improve the mechanism linking training subsidies, training quality and performance on employment promotion and guide all kinds of educational training institutions to actively carry out directional trainings according to the market demand. We shall mobilize all the social walks to accelerate the training of high-technology talents that meet the demand of enterprises. We shall bring into full play the effect of multiplication of employment as brought about by business setup. We shall carry out the trainings for business setup for those urban and rural laborers who have the desire to set up their business and meet the relevant requirements for business setup, provide the "one-package" services of offering the guidance for business setup, project development, small amount guarantee loans and follow-up supporting services so as to provide the support of small amount guarantee loans for those who have wound up the trainings for business setup as well as make efforts to do a good job in the follow-up supporting services. We shall make efforts to carry out occupational trainings and elevate the ability of rural migrant laborers to seek jobs in cities. We shall, according to the features of rural migrant laborers as well as the demand of employment, carry out comparatively practical trainings with aim and provide the occupational skill authentication services. We shall make full use of such means as long-distance TV trainings to send technical knowledge and employment information to farmers. We shall organize the implementation of state training projects in key industries that have employed comparatively a large number of rural migrant workers as well as in the poverty-stricken areas that have organized the export of labor services. The training of and employment services for the farmers whose land has been requisitioned by the state shall be determined by all the regions in an overall manner. The funds as required and the expenses for land requisition shall be arranged in an overall manner. (14) We shall intensify the practical trainings of occupational skills and the occupational skill authentication services. We shall build up practical training bases in those areas with mature conditions so as to carry out the operational trainings for occupational skills as well as the occupational skill authentication services to the general public. We shall carry out the special examination of occupational competency and provide public services for creating new jobs and elevating the ability of laborers to hunt jobs. We shall provide the occupational skill authentication services for laid-off and unemployed personnel that participate in occupational trainings. Any person holding the Preferential License for Re-employment who has passed the first skill authentication (restricted to the type of work subject to an employment access system as prescribed by the state), or any person with real living difficulties may apply for the one-off subsidy for his occupational skill authentication. The funds as required shall be solved by the local fiscal department. IV. CARRYING OUT THE REGULATION OF UNEMPLOYMENT AND INTENSIFYING THE ADMINISTRATION OF EMPLOYMENT (15) We shall establish an early warning mechanism for employment, formulate reserve plans as well as the relevant measures, apply the legal means, economic means as well as necessary administrative means in a comprehensive manner to regulate unemployment and ease all kinds of conflicts arising from unemployment. We shall adopt special policies and measures in a timely manner for the industries and enterprises where any change of the internal or international economic situation may have any direct impact on employment as well as in the regions and industries where the problem of unemployment is prominent so as to make efforts to reduce unemployment and guarantee the stability of employment. (16) We shall continue encouraging the large or medium-sized state-owned enterprises to carry out a reform of separating their main businesses from accessory businesses and turning their secondary lines of business into independent companies, fully utilize the assets of non-major business and idle assets of original enterprises as well as the effective assets of closed or bankrupt enterprises to establish legal-person economic entities with independent accounting and management through restructuring (except for those industries as restricted by the state) and resettle the redundant personnel thereof. For any enterprise with clearly defined property right that gradually achieves the pluralistic ownership of property rights, has employed more than 30 % of the redundant personnel of the original enterprise, and has altered or concluded new labor contracts therewith, upon the accreditation of the relevant departments and the examination of the taxation department, its enterprise tax income shall be exempted within 3 years. (17) We shall promote the restructuring and bankruptcy of state-owned enterprises in a stable manner, strictly examine and supervise the implementation of the allocation plan for employees, regulate the operation of enterprises and safeguard the legitimate rights and interests of employees. Where any state-owned enterprise goes through restructuring or bankruptcy, the allocation plan for employees shall be adopted upon deliberation at the employees' representatives' assembly or at the employees' assembly. An enterprise whose allocation plan for employee¡¡¥s or measures for social and labor security is unclear or whose capital cannot be paid on schedule shall not undergo any procedures for restructuring or bankruptcy. We shall guide enterprises to inform their workers of the policy contents as well as the procedures for operation in the preparatory stage of bankruptcy by diversified effective means and thorough publicity policies. We shall effectively intensify the supervision of and guidance for the employee allocation work in the procedures of enterprise bankruptcy. Where the procedures for bankruptcy are concluded, we shall do a good job in the settlement of employees and social and labor security in a timely manner and properly handle any problem as left over. (18) We shall regulate any reduction of employees by enterprises. We shall effectively intensify the guidance for staff reduction of enterprises. Where an enterprise reduces its employees on a scale, the reduction plan shall be subject to the deliberation at the employees' representatives' assembly of the enterprise. Where the staff reduction of an enterprise at a signal time exceeds a certain number or proportion, it shall be reported to the local government in advance. Where any enterprise fails to pay the economic compensation for the cancellation of labor contracts or fails to resolve the delayed payment of debts to employees according to law, it shall not fire any employee. (19) We shall further carry out the restructuring of the labor market and break up the segmentation of urban and rural labor markets or regional labor markets. We shall regulate the order of the labor market and effectively safeguard the legitimate rights and interests of urban and rural laborers. We shall carry out the straightening-out and rectification activities in the labor market, intensify the supervision of all the occupation intermediary services, severely crack down on any irregularity or disciplinary breach in the labor market, regulate the job application of laborers, the recruitment of employing entities as well as the occupation intermediary services. We shall establish an administrative licensing system for labor service dispatch and regulate the labor service dispatch. We shall build up the contingents for law enforcement and supervision of social and labor security, intensify the law enforcement and supervision, strictly prohibit and resolutely correct any act of overtime work, refusal to conclude a labor contract, any downsized or delayed payment of wages, failure to pay the premiums for social insurance or staff reduction at random. (20) We shall improve the statistical system for employment and unemployment. We shall intensify the registration and statistical work of unemployment, establish an investigation system of laborers and carry out the urban labor investigation throughout the nation on a periodic basis so as to accurately grasp any change of demand and supply of the national labor market. (21) We shall accelerate the legal-system construction for employment. We shall seriously summarize the work experience on employment and unemployment, make efforts to deliberate and formulate the relevant laws and regulations on the promotion of employment, clarify and intensify the relevant effective policies and measures so as to lay a solid foundation for a long-term mechanism to resolve the problem of unemployment in the context of market economy. V. FURTHER IMPROVING THE SOCIAL AND LABOR SECURITY SYSTEM AND ESTABLISHING AN INTERACTIVE MECHANISM TO PROMOTE EMPLOYMENT (22) We shall establish an interactive mechanism of employment and social insurance as well as the minimum living costs of urban citizens. We shall effectively guarantee the basic life of the personnel who enjoy the unemployment insurance and the minimum living costs of urban citizens, further improve the measures for applying and collecting the social insurance premiums and the minimum living costs of urban citizens, improve the requirements for application and collection in combination with the information on job hunting and occupational trainings, improve and promote the incentive and restriction mechanism for employment, promote and help those personnel who enjoy the unemployment insurance and the minimum living costs of urban citizens to find their jobs as soon as possible and resolve the problems of living guarantee and social insurance after the employment is realized. We shall determine the unemployment insurance and the minimum living costs of urban citizen in a reasonable manner, draw a line among the standards for minimum wages, the standards for unemployment insurance and the standards for the minimum living costs of urban citizens, clarify the levels, link them up and form a reasonable standard system in support so as to not only effectively guarantee the basic life of those groups in difficulties but also be conducive to mobilizing the initiative of personnel with work ability to find jobs. (23) We shall further intensify the basic administration of unemployed personnel and people who enjoy the minimum living costs of urban citizens. We shall bring into full play the function of work platform for social and labor security in communities of residential districts (villages and towns), intensify the communication and cooperation between the departments of social and labor security and civil affairs, etc., grasp the information on the employment and income of unemployed personnel and people who enjoy the minimum living costs of urban citizens and provide help and services accordingly. (24) We shall settle any problem as left over by integration in a proper manner. From 2006, any person as newly fired by an enterprise fails to find a job in the labor market may enjoy the unemployment insurance and the minimum living costs of urban citizens. All regions shall continue to take effective measures to solve any problem as left over in such respects of re-employment, continuance of the social insurance and the handling of labor relationship. (25) We shall further bring into play the function of the unemployment insurance system to promote the re-employment. The eastern regions shall, on the preconditions of seriously analyzing the expenditure and payment as well as the balance of the unemployment insurance premium and taking into overall account the arrangement of the local fiscal department for employment and re-employment funds, properly enlarge the pilot expenditure scope of the unemployment insurance premium. The specific measures shall be formulated by the Ministry of Social and Labor Security and the Ministry of Finance. (26) We shall further improve the social insurance system. We shall continue to intensify the collection of social insurance on a larger basis, effectively do a good job in the hand-over of the social insurance relationship of laid-off and unemployed personnel after their re-employment and incorporate more laborers into the coverage of the social insurance system. We shall gradually unify the policies for urban individual industrial and commercial households or the people subject to flexible employment to purchase the old-age insurance, improve the measures for calculating and distributing the basic premiums of the old-age insurance, intensify the incentive and restriction mechanism linking payment to treatment and form a sound interaction between employment and the improvement of the social insurance system. We shall actively create the conditions to provide necessary social and labor security for rural migrant workers who seek jobs in cities. VI. CONTINUING INTENSIFYING THE ORGANIZATION AND LEADERSHIP AND MOBILIZING THE WIDE PARTICIPATION OF ALL SOCIAL WALKS IN THE WORK OF EMPLOYMENT AND RE-EMPLOYMENT (27) The people's governments at all levels and the relevant departments shall continue solidifying and intensifying the work target responsibility system for employment and re-employment. They shall continue incorporating the increase of employment and control of unemployment rate into the macro regulation indicator of the national economy and social development. They shall make the solution of laid-off and unemployment problems as left over by the system transition, the promotion of the employment of new urban laborers, the promotion of an overall employment in urban and rural areas, the intensification of the control over unemployment and the realization of an interactive mechanism between employment and the social and labor security system as the major target tasks, decompose the responsibility on a level-by-level basis, incorporate them into the assessment of political achievements as important contents and carry out supervision and examination on a periodic basis. (28) The people's governments at all levels and the relevant departments shall further intensify the leadership and overall coordination of employment and unemployment. In order to meet the requirements of the new situation, the State Council shall adjust the inter-department joint meeting system for re-employment to the inter-department joint meeting system for employment so as to form a work mechanism of uniform leadership and coordination by work division. Under the direct leadership of the people's governments at all levels, the member entities of the inter-department joint meeting shall earnestly perform their functions and duties, intensify coordination and cooperation so as to jointly do a good job in employment and re-employment. (29) The people's governments at all levels shall, according to the change of the employment situation as well as the requirements of the employment work, actively adjust the structure of fiscal expenditure, intensify the capital input and incorporate the funds for employment and re-employment into the fiscal budget. For the central and western regions and the old industrial bases, the state treasury shall continue to grant proper subsidies by means of payment through special transfer, which shall be mainly used as the subsidies for job introduction, occupational trainings, social insurance and small amount guarantee loans. Moreover, the fiscal departments at all levels shall arrange the funds as used for the construction of work platform for social and labor security in the labor market and in the communities of residential districts (villages and towns). They shall effectively intensify the supervision and examination of allocation and use of funds for employment and re-employment according to their special use and elevate the use efficiency of the funds. (30) We shall bring into full play the function of all democratic parties, business associations as well as such people's associations as the Labor Union, the Youth Communist League and the Women's Federation in assisting the government in formulating policies, solidifying all parties to actively participate therein, in publicity and mobilization and social supervision and in helping those people to set up their own business or seek jobs. We shall support the forgoing organizations to organize all kinds of trainings, provide diversified services and elevate the service competency for business setup or employment so as to form a situation that all the social walks do a good job in employment and re-employment with joint efforts. (31) All the news entities shall continue to publicize the policies for employment and unemployment to the people, enterprises as well as entities at the grass-root level through diversified forms such as broadcasting, television, newspaper and network. They shall exemplify and publicize those people who hunt their job, set up their business, those enterprises that employ unemployed persons and the entities at the grass-root level that carry into effect the relevant policies. We shall guide the laborers to transform the conception of employment and build up a favorable atmosphere that the whole society supports and helps in the work of employment and unemployment. We shall further intensify the construction of the organizations at the grass-root level, intensify the ideological and political work, and, based on the organizations and entities at the grass-root level such as enterprises and communities of residential districts (villages and towns) and by means of patient and careful ideological and political work as well as the publicity of public opinions, guide the laid-off and unemployed personnel to realize the re-employment by his own efforts under the support of the state policies and social help. (32) The foregoing policies for support shall come into force as of 2006. The deadline for the examination and approval of the policies shall be temporarily set at the end of 2008. In the process of implementing the policies, if the state carries out any reform on the taxation system, the taxation polices as mentioned herein shall be subject to new taxation policies. All regions and relevant departments shall, in combination with the local actual situation, make efforts to deliberate and formulate the specific measures and detailed rules for the implementation of the present Circular so as to ensure that the spirit of the present Circular be carried into effect. On the preconditions that the relevant policies for taxation are not involved, that the non-tax incomes of the Central Government are not affected and that no subsidy of the Central Government is added, any other policy that is conducive to promoting the local urban and rural employment may be formulated. |
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