Zheng also predicted that the central government will this year inject "a lot" into the social security system. "Strengthening social security is a must to tackle the crisis, as well as to improve people's livelihood," he added.

The Ministry of Human Resources and Social Security accelerated reforms in pension insurance last month, meaning millions of rural and urban migrant workers will be better protected under new regulations.

Rural workers will now enjoy the same rights as those from urban areas if they pay contributions in time, while the other proposal is to scrap barriers on transferring a pension fund between provinces to help the workforce move around more freely.

The domestic employment demand hit a two-year low at the start of this year, while China's urban unemployment rate, which excludes migrant workers, jumped for the first time in five years to 4.2 percent as of Dec 31, said the ministry.

The nation has an unemployment target to 4.6 percent this year, which would be the worst since 1980, with around 7.5 million college graduates also soon to enter the grim job market.

"Improving the employment situation is our top priority and everything we do is aimed at achieving that goal," said ministry spokesman Yin Chengji.

The State Council has issued two job stimulus packages in the last two months to help graduates find jobs, while those provinces that are the major exporters of migrant workers - including Henan, Sichuan and Jiangxi - are also providing free vocational training and small loans to help resettle those who have returned.

(China Daily March 5, 2009)