FRIDAY, AUGUST 17, 2001
China to phase out limits on labour flow
BEIJING: China on Friday decided to phase out the archaic policy which limits the movement of labour between urban and rural areas, so as to increase employment opportunities for the rural masses and lessen the widening income gap.
According to a specific plan of state development planning commission, China will reform the residence registration system and the social security system to facilitate the establishment of a unified labour market in both urban and rural areas in the relatively prosperous eastern coastal provinces.
The SDPC said the rapid increase in labour has exacerbated the redundancy of labour supply, which in turn has affected people's living standards and widened the gap between the rich and poor.
The plan predicts that in the next five years, some 46.5 million people will enter the labour force in cities. The pressure of unemployment will become even more severe as China accelerates industrial restructuring and the reform of state-owned enterprises before its accession to the World Trade Organisation.
The SDPC said the existing residence registration system and migration policy put excessive restraints on the flow of labour, hindering the distribution of labour according to market demands.
According to the plan, China will establish an employment registration system, issuing a single social security number to all citizens who will have their own personal wage account and social security account. ( PTI )
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