CESC View on Global Jobs Pact
Financial crisis since 2008 has not only seriously affected the world
economy, but also brought about massive job crisis, further leading to a social
recession. According to the ILO Global Employment Report 2009, affected by
the international financial and economic crises, total unemployment in the
world in 2009 was between 210 million to 239 million with a high rate of
unemployment of 6.8 %, reaching the peak since 1991.This has led to some
serious social problems. An index of political instability developed by the
Economist Intelligence Unit shows that, 95 out of the 165 countries covered
face a high or very high risk of instability. Labour conflicts and large-scale
protests have already been recorded in many countries.
To respond to the challenges to employment, ILO Summit on Global Jobs
Crisis convened during 98th Session of the International Labour Conference in
June 2009 adopted the Global Jobs Pact. The Pact proposes a wide range of
crisis-response measures, calling upon the international community and
countries in the world to put employment and social protection at the centre of
crisis response to ensure equal opportunities to men and women.
The Global Jobs Pact is a strong response of the governments, employers
and workers of the ILO member-states to the employment crises. It is also a
reflection of “promoting the goal of full employment as a basic priority of our
economic and social policies” set forth by Copenhagen Declaration on Social
Development in 1995. Therefore, it has been supported and welcomed by the
UN General Secretary, G8 and G20. More importantly, it offers a unique
opportunity for countries and the multilateral system to respond to the crisis
with a shared vision for a productive and balanced recovery that protects the
dignity of people and contributes to realizing a fair and sustainable world
economy and globalization process.
As the most populous developing country, China is also faced with the
most serious employment difficulties. Employment has become a major task in
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our effort to ensure economic growth, people's livelihood and social stability.
To this end, the Chinese Government has promptly and resolutely adopted a
stimulus package for steady and fast economic development, which gives
higher priority to employment, and implemented a more active employment
policy to promote job creation in an all-round way. First, expand domestic
demand to promote employment. We have made employment an important
objective of the RMB4 trillion stimulus packages, which is expected to
generate 22 million new jobs in two years. Second, ease business burdens to
maintain jobs. Enterprises in difficulty are allowed to postpone and reduce their
payment of social insurance contributions. For those businesses making no or
fewer job cuts, we provide social insurance and job subsidies as well as
financial support for training programs. These measures are expected to retain
20 million jobs. Third, adopt more active employment policies. For enterprises
to hire the laid-off, we provide them favorable tax policies and subsidy for
social insurance. For job-seekers who start up their businesses or take up
self-employment, we provide tax exemption and reduction, micro credit
guarantee, loan interest subsidy and training. We are also working to create
more jobs in public service. In this way, we help people get employed through
various ways and in flexible forms. Fourth, enhance public employment service,
providing free service in job searching and consultancy with focus on
university graduates, migrant workers and the urban hard-to-place people. Fifth,
implement a special vocational training program. It is aimed at providing
government subsidized, targeted training for employees of enterprises in
difficulty, migrant workers who have returned to hometowns, the laid-offs and
the new labor entrants. Sixth, promote tripartite dialogue and consultations
among the government, employers and trade unions, and their cooperation to
overcome difficulties. Seventh, improve social security system. We are working
to increase financial input into social security, expand its coverage and raise its
level so that more people will be able to enjoy basic social security.
The above-mentioned policy measures have yielded initial results. The
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registered unemployment rate in China's urban area in 2009 was kept below
4.6%. More than 9 million new jobs in urban areas were generated; 5 million
laid-offs got re-employed; 1 million hard-to-place people were employed and 8
million migrant workers transferred. In addition, 15 million people received
special vocational training. We believe that stable employment in China will
not only facilitate our own economic growth and social stability, but also turn
out to be an important contribution to global economic recovery and job
growth.
The international financial crisis is a global challenge. To overcome it
requires joint efforts of the international community. China Economic and
Social Council believes that, to better respond to the severe challenges to
employment brought about by the economic crisis, the international community
should make the following efforts:
First, give higher priority to stabilizing and expanding employment in
economic and social development strategies. Employment serves as the
foundation for people's well-being. The international community should
continue to take all effective measures to restore market confidence, promote
economic growth and promote employment. At the same time, encouragement
and respect should be given to countries in their effort to formulate their own
economic recovery plans and identify recovery priorities in line with their
respective national conditions.
Second, stay committed to openness and cooperation to promote job
growth. To prevent the financial crisis into a global job crisis, the international
community should strengthen cooperation, dialogue and experience sharing,
oppose trade protectionism, work for win-win outcome through openness and
cooperation, and create more job opportunities for workers of all countries.
Third, take concrete actions to protect the interests of developing countries
and promote common development. The international community, particularly
developed countries, should assume more responsibilities and obligations to
help developing countries maintain financial stability, economic growth and
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employment stability in particular. It is necessary for international
organizations to take such measures as economic assistance, technical
cooperation and advisory services to help developing countries enhance
capacity for self-development.
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