China pledges more proactive employment policy, 42 bln-yuan support

With its annual growth slowing to a seven-year low of 9 percent last year, China has seen about 20 million out of 130 million migrant workers returning to their rural homes without jobs.

In addition, there will be 7.1 million college graduates seeking vacancies this year, including 1 million who failed to secure jobs last year.

China is yet to see the worst employment situation while its economy has shown signs of recovery, as the rebound of job creation is usually behind economic turnaround, said Li Yining, a leading Chinese economist with Peking University.

"The economy usually demand less labor after experiencing a crisis because it will see improved technologies, equipment and productivity," said Li, also a member of the 11th National Committee of the Chinese People's Political Consultative Conference (CPPCC), the nation's top political advisory body.

The urban unemployment rate rose to 4.2 percent at the end of 2008, up 0.2 percentage point year-on-year.

China aims to keep its registered jobless rate below 4.6 percent and provide 9 million new urban jobs this year.

"It's not an easy target, but the country is actively finding ways to make it happen," said Li.