The Minister of Labor and Social Security Zheng Silin told the People's Daily recently that the time of the highest numbers of people laid off from state-owned enterprises (SOEs) is past.

Zheng added that a new social security framework is being established nationwide, policies and measures promoting reemployment have begun to play an effective role, and people's attitudes toward employment have witnessed a dramatic change.

Three "security lines" had previously been established: the basic livelihood guarantee system for laid-off workers, unemployment insurance, and the municipal minimum livelihood guarantee system.

The Central Economic Working Conference which was held later last year decided that integration of the basic livelihood guarantee for laid-off workers and unemployment insurance would be basically realized by the end of this year. As the three "security lines" reduce to two, nearly one million laid-off SOE workers currently registered at unemployment centers will be redirected to general reemployment services.

The minister said the Central Committee of the Communist Party of China (CPC) and the State Council made the decision to integrate after previous years' experience with the livelihood guarantee. According to Zheng, it was an important move in improving urban social security, establishing a market-oriented employment mechanism, and better protecting the fundamental interests of the wider population.

The basic livelihood guarantee for people laid off from SOEs was an interim measure taken during a transitional period, said Zheng, and now is an opportune moment for integration.

During integration, still unemployed laid-off workers will be included as unemployed, which will bring about pressure on reemployment and possibly result in the rate of unemployment rising. Ensuring each stage of integration goes smoothly will be crucial for maintaining a stable employment market and society, Zheng said.

In addition, large numbers of farmers and migrant workers in cities have not been completely covered by the current social security system, said Zheng, since it was initially designed for cities. As coordinating urban and rural development has been prioritized, a system covering both areas will be required.

The old-age pension in rural areas is still bolstered by family and by earning money from or living off the land. Some places will implement pilot rural social endowment insurance, pension funds that come from individual payments with collective supplements added, supported by governmental policies.

To target migrant workers, the key work now is to improve related policies to solve problems concerning work-related injury and medical care for serious conditions.

The minister said "covering more people under guarantee" remains the goal of social security, and the state is going to ensure more and more people come under its umbrella by increasing its spread.

(China.org.cn by Zhang Tingting, April 12, 2005)