The new target aims to keep Shanghai's registered unemployment rate at less than 5 per cent.

By the end of June, it had already reached 4.85 per cent, with the total number of unemployed laborers climbing to over 294,000, latest statistics show.

Jiao Yang, a municipal spokeswoman, noted yesterday at a press conference that employment forecasts for the rest of the year were "not optimistic."

Jiao, however, pointed to a dramatic jump in the number of university graduates who have been secured jobs in the city in June, now that SARS is under control.

By the end of June, 81 per cent of the city's senior undergraduates and 94 per cent of graduate students had found jobs, statistics showed.

The number of university graduates in Shanghai totaled 81,733 this year, up 31 per cent over last year.

The municipal spokeswoman yesterday announced one new job creation measure, allowing ordinary employers to buy into domestic businesses based in the city's Pudong New District.

Jiao said the change aimed to further encourage private investment in local industries to boost employment. Previously, only private entrepreneurs, farmers, retired or unemployed workers were allowed to invest in domestic enterprises.

(People's Daily July 3, 2003)