Vocational Training and Employment in China

1.1 At the end of 1998, China had a population of 1.248 billion, with 380 million urban, representing 30% of the total, and 870 million rural, representing 70%. 51% of the population were male and 49% were female.

1.2 GDP for the year of 1998 was RMB 7.9553 trillion, 2.07 times of that in' 1991 at comparable prices. From 1991 to 1997, GDP had grown at an annual fate of 10.8%.

2.1 At the end of 1998, there were 699 million employees in China. Among them, 206.7 million were urban employees, accounting for 29.6%, and 492.7 million lived in the rural areas, accounting for 70.4%. Among the urban employed, 184 million were employees in enterprises of various types of .ownership and 22.59 were self-employed. Among the rural labor force, 372 million worked in the agricultural sector, 74.49 million were employed by township and village enterprises (TVEs) and 38.55 were self-employed.

2.2 By the end of 1998, registered unemployed workers in urban China had reached 5.71 million. The registered unemployment rate was 3.1%,

2.3 In 1998, there were 348 million employees in the first industry, accounting for 49.8%164 million in the second industry, accounting for 23.5%, and 187 million in the tertiary industry, accounting for 26.7% of the total. Compared with the ratio of 60:21:19 of the 3 industries in 1991, the employment in the first industry had decreased by 9.9%, while the second and tertiary industry had risen 2'1% and 7.8% respectively.

2.4 In 1998, among the urban employed, 90.58 million were with State-owned enterprises (SOEs) and 19.63 million with collectively owned enterprises (COEs). Of the rest, 22.59 million, 9.73 million, 2.93 million and 2.94 million were self-employed, employees with private enterprises, joint ventures with foreign investment and joint ventures with Hong Kong, Macao and Taiwan investment respectively.

By 1998, numbers of self-employed individuals, of employees in private enterprises, of employees in joint ventures with foreign investment and of employees in joint ventures with Hong Kong, Macao and Taiwan investment had climbed 13 times, 2.1 times and 3.2 time respectively compared with 1991.

3.1 At the end of 1998, there were 6.10 million laid-off workers from SOEs, representing 9.2% of SOEs' total.

The State has identified one of its current and next step top priorities is to address the issues of guaranteeing the basic living and re-employment of the laid-off workers of SOPs.

The annual number of re-employed workers shall exceed that of the newly laid-off of the same year. Above 50% of the workers who have been laid off either in 1998 or in the preceding years have been re-employed.

Efforts shall be trade to establish an initial social security system and employment mechanism suitable for the socialist market economy in about 5 years.

Widely set up Re-employment Service Centers and guarantee the basic living of the laid-off workers of SOEs:

4.1. China's vocational training system is composed of the following key elements: occupational classification and vocational skill standards, vocational skill testing and vocational qualification certification, skill competition and awarding of skill talents.

In 1992, the first Directory of Job Classifications. of the People's Republic of China was published. Up to date, over 3,200 skill-level standards (occupational skill standards) have been publicized. In addition, Occupational Classification Dictionary of the People's Republic of China was official published in 1999.

Vocational training incorporates pre-job training, job transfer training, apprentice training and on-the-job training. According to vocational skill standards, the levels of training are categorized into low, medium and senior levels vocational training, technician and senior technician training and other adaptation training. Training programs are primarily provided by technical schools and other types of vocational training providers. Technical schools are the main base for training skilled workers while employment training centers are the bases for training unemployed workers. Both focus on practical skills and adaptability training. In addition, there are enterprise-sponsored training centers and training providers run by various organizations or individuals which deliver on-the-job training and other training programs.

Comprehensive training bases are the results of reforming the existing technical schools and enterprise based training entities. They have a wide range of functions such as job demand forecast, vocational skill testing and vocational guidance and are closely linked to job match. Such comprehensive training bases provide trainees with integrated services including training, testing and job placement.

Vocational skill development group is a new model of training alliances. Various kinds of training providers based on urban communities seek to carry out joint operations among training, testing and employment service agencies and aim to improve economy of scale in training and employment promotion. With an aim to improve the employability of the ' labor force and stimulate employment demand, there are 3 priorities in vocational training.

Implement the Labor Preparatory System nation wide. The Labor Preparatory System was initiated in urban areas in 1999 to enhance the quality of workers. The new entrants of labor force and other job seekers are organized to receive vocational training and vocational education ranging from 1 to 3 years, After having acquired vocational qualifications or mastering certain vocational skills, with the assistance and guidance of the government policies, they will be employed through labor markets.

Implement the program titled as "Helping 10 Million People to Get Reemployment in 3 Years", This program aims at promoting re-employment of laid-off workers and supporting the main task of maintaining basic living and re-employment of laid-off workers from SOEs. By mobilizing all types of training providers in the society, a close link has been established between enterprises and reemployment service centers and vocational training institutions. Also there are some other effective programs such as government purchasing training results to encourage laid off workers to participate in reemployment training.

Organize the implementation of entrepreneurial training programs and probe a new way to promote employment. In 1998; the Ministry of Labor and Social Security piloted entrepreneurial training in Beijing, Shanghai, Suzhou and some other cities and obtained positive outcome. At present, 30 cities have already carried out entrepreneutial training programs.

To date, China has initially established a testing system for low, medium and senior level skills and a testing and assessment system for technicians and senior technicians in order to test and assess the vocational skills of workers and publicize the vocational skill certification system Occupational skill testing and certification are adopted for the graduates of technical schools and vocational training providers. For all types of skilled jobs in the enterprises, workers are required to obtain certificates through training and testing before being allowed to take up the job. For self-employed and private enterprises, the practice of employees working with certificates shall also be adopted

Since 1995, the winners of "China Skill Grand Award" and "National Skill Hands" have been selected based on merit and commended. Up to now three such selections have been conducted. Vocational skill competitions in all industries in the nation have been organized involving millions of workers in the on-the-job practice, resulting in the improvement of vocational skills.

The general provisions of the Labor Law stipulate that the State shall take all measures to promote employment, develop employment, develop vocational education and that workers shall upgrade their vocational skills. At the same time, the law has a special chapter, Chapter 8, on vocational training, which clearly specifies the responsibilities to be borne by the State, governments at all levels, employers and workers for the development of vocational training.

The Vocational Education Law, issued on May 15, 1996 and taking effect as of September 1, 1996.

The Vocational Education Law, which was formulated in fine with the Education Law and the Labor Law, specifies a vocational education system giving equal emphasis on vocational school education and all forms of vocational training. It establishes the developing guideline that calls for diversified vocational education and provides friendly environment for the development of vocational education. It is regarded as a law regulating vocational education activities in a comprehensive manner

The State shall implement a system of occupational qualification certification and provide the principle by which workers are required to receive necessary training before employment or taking-up, their jobs.

In accordance with the Labor Law, the Ministry of Labor and Social Security has formulated rules and regulations, requiting that workers to be engaged in technical jobs have to receive training before employment or taking their jobs and that workers in other jobs receive necessary training before employment or taking up their jobs.

The principle of "integrating training, testing and assessment with application and also remuneration" shall be adopted in enterprises.

A system of classifying occupational skills into three levels, namely, low, medium, and senior skill levels and a, system of appointing technicians and senior technicians have been adopted.

Financing vocational training: Vocational training is financed through various sources, including government budget allocations, self-raised funds by enterprises and non-profitable entities and loans, tuition fees charged on trainees, income creation by training entities, social financial assistance, donations and grants, and etc. The State regulation stipulates that 1.5% of the total payroll of enterprise workers shall be used for workers training. It is further stipulated that certain proportion (usually 15%) of the employment funds and unemployment insurance funds of local governments shall be used for the pre-employment training and retraining programs for the unemployed.

Implement a market-based employment mechanism whereby employment is promoted by the State, regulated by the market and job seekers select their jobs freely.

EMP/SKILLS - Skills and Employability Department