Promoting Re-employment
While guaranteeing the basic livelihood of the unemployed, the state actively
looks for effective ways to steer unemployment insurance in the direction of
promoting re-employment. It has strengthened the link between unemployment
insurance services and re-employment services. Through prompt registration of
unemployment, active provision of employment information and giving
comprehensive employment guidance and job agency services, the state helps
unemployed people to enhance their capabilities for competitive employment in
both skills and mentality. It also increases the input of unemployment insurance
funds into job agency services and occupational training. Through organizing
training directly or purchasing R and D achievements, the government provides
all kinds of job skill training for the unemployed in order to improve their
capabilities for re-employment.
Guaranteeing the Basic Livelihood of Laid-Offs
from State-owned Enterprises
In 1998, in view of the increased pressure on state-owned enterprises in
re-positioning their redundant personnel and the inadequate bearing capacity of
the unemployment insurance, the Chinese Government created the basic livelihood
guarantee system for people laid off from state-owned enterprises.
-- Making sure that the laid-off personnel from state-owned enterprises
receive their basic living allowances in full and on time. Re-employment service
centers have been established in all state-owned enterprises with laid-off
personnel. After the latter have registered at a re-employment service center,
they shall receive from it a basic livelihood allowance a little higher than the
unemployment insurance payment in their own locality. The re-employment service
center also pays old-age, medical and unemployment insurance premiums for
laid-off people. The centers' funds for basic living allowance payment to
laid-off persons and their insurance premiums generally come from the following
three sources: one third from the local government's financial budget, one third
provided by enterprises, and the remaining one third from the social pool
program (mainly from unemployment insurance funds). From 1998 to 2003, some 24
million laid-off persons from state-owned enterprises across China had
registered at the re-employment service centers, and nearly 19 million of them
had found new jobs. Those who had registered at the centers had received
allowances for basic livelihood in full and on time, and the centers had also
paid social insurance premiums for them.
-- Establishing the "three guarantees" system. Since 1998, the Chinese
Government has put into operation a system that provides for three guarantees:
basic livelihood guarantee for laid-off persons from state-owned enterprises,
unemployment insurance guarantee and minimum living standard guarantee for urban
residents. Laid-off persons can receive a basic living allowance for up to three
years. If they still have not found a job by then, they can receive unemployment
insurance payments. If the per capita income of a family is below the local
minimum living standard, they can apply for the minimum living standard
guarantee for urban residents.
-- Integrating with unemployment insurance. With the steady improvement of
the unemployment insurance system and the increase of the fund accumulations,
since 2001, the basic livelihood guarantee system for laid-offs from state-owned
enterprises has been integrated with the unemployment insurance program.
State-owned enterprises now have ceased to establish any new re-employment
service centers, and, in principle, people newly laid off by enterprises have
also ceased to register at such centers. Instead, enterprises just terminate
their labor contracts according to law, and the laid-off persons will then be
entitled to unemployment insurance benefits according to relevant regulations.
For some time in the future, the problem of surplus labor force and the
problem of irrational employment structure will still exist, and unemployment
insurance will continue to face considerable pressure. The Chinese Government
will make every effort to expand the coverage of unemployment insurance, and
standardize fund raising and payment as well as its use and management. While
guaranteeing the basic livelihood of unemployed people, it will give further
play to the role of unemployment insurance in promoting re-employment.
