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Description of Current Economic Situation: Rising Employment, Rising Income and Rising Consumption

One of spotlights of our economic and social development in recent years is to care people's living standard and improve living condition. In the first half year, on the basis of sustained and rapid growth of national economy, the new added employees of cities and towns hit a new high record; incomes of residents both in urban and rural areas rise quickly; social security is intensified and consumption's drive to economic growth is obviously enhanced. Citizens all feel the amazing changes in their daily lives, and step into a wealthier and happier well-off society.

New high record of employee's number, people's high aspiration for support policies

Employment comes first in people's life. Since this year, thought employment pressure is huge, the number of employees has been increased, and employment has kept stable.

Data from Ministry of Labor Security shows there are 6.29 million new added employees in cities and towns in the first half year, finishing 70% of annual goal and making the best achievement compared with the same period after the implement of positive employment policy. Other employment and reemployment tasks are also be over-fulfilled. The number of reemployed of laid-off workers is 2.79 million with 56% annual task finished. Of these, the number of employees who once could hardly get jobs is 0.74 million with 74% annual task finished.

The affection for better living standard for people of our Party and Government lights up the flame of employment at present. In the first half year, the rapid growth of employment is not only pulled up by economic growth and enterprises' profits rise, but is also the comprehensive result of a series of employment policies which give priorities to human and people's living standard.

Minister of Labor Security Tian Chengping points out that Central government and State Council attach much attention to people's living standard and always giver priority to employment in social and economic development. Relative departments cooperate and support each other closely to further the practice of employment policies.

In the first half year, new breakthrough is made in employment assistance and employment service. All regions enforce reemployment policy to help many unemployed families to get jobs by promoting complete employment communities activity. And they also vigorously advance the systematic, professional and social employment service construction, progress public employment service offices and further vocation training. Efforts are also made in Separation of Core and Non-core Business and Non-core Business Reformation of Large and Medium-sized State Enterprise, reasonable arrangement of surplus personnel, regulation of enterprises reeducation of staffs, establishment of unemployment prevention mechanism as well as control of unemployment to keep a stable employment situation.

Moreover, it is not only urban workers but also peasant worker get benefits from active employment policies. All regions continuously promote employment service, further vocation training, carry out free job introduction and vocation training allowance for peasant workers in urban areas to intensify employment of peasant workers. After the Spring Festival, they held on a "Spring Act" in the theme of helping peasant worker find a job in city which provided more than 12.5 million free job introductions to peasant labor and helped 5.3 million peasant workers get jobs.

As far as we know, in this year, the government tries to add another 12 million employers in urban areas, more than that of last year. In 2006, the new added employer in urban areas up to 11.84 million on the basis of 11.1% economic growth.

Tian Chengping expresses that there are still many problems in employment thought the employers keep growing in recent years. In the second half year, relative departments will further carry out active employment policies, coordinate all levels finance departments to give employment and reemployment investments in time, intensify employment service and vocation training, and improve employment quality to make sure that the whole year task could be completed successfully.

Rising income of residents, sharing reform and development achievements

The policy of improving people's living standard and expanding employment lead to the increasing income of residents. In the past four years, average disposable income of urban residents and average net income of rural residents respectively rose 9.2% and 6.2%. From this year, with the growth of economy, interest, employment and salary, the income both of urban and rural residents will keep a rapid increase.

According to the survey, in the first half year, the average disposable income of urban residents reaches 7052 RMB, with a year-on-year growth of 4%. Taking account of the price factors of the corresponding period, the actual increase rate is 14.2%. The average cash income of rural residents reaches 2111 RMB, with 1.4% year-on-year growth of 314RMB. Taking account of the price factors of the corresponding period, the actual increase rate is 13.3%.

Minister of Finance ministry Jin Renqing said that reforming the income distribution system, regulating the income distribution order and establishing a scientific, rational and just social income distribution system is the requirement of carrying out scientific view of development, establishing socialism harmonious society and perfecting socialist market economy system. This job bears on the fundamental interests of most people and the full play of initiative and creativity of a large number of officials and people, and it also has great importance to establish overall well-off society and speed up socialism modernization.

In the first half year, ministry of finance makes efforts to improve income of residents by followings methods.

Firstly, it carry out a serious favorable polices to increase peasants' income and improve peasant's livelihood. From January to June, the investment to support agriculture rises up with 28.7% year-on-year growth. To resolve the living problem for rural poverty people stably, persistently and effectively, from this year, the central government arranges 3 billion RMB subsidies to establish the lowest living security system of the rural resident.

Secondly, continue adjust lowest salary standard in some regions. In 2006, on the basis of lowest salary standard adjustment in 29 provinces, autonomous regions and municipalities, there are another 4 cities adjust the salary standard in the first half year, which promote reasonable salary growth for labors with lower incomes.

Thirdly, increase basic retirement pension standard for enterprises retirees, and carry out basic living security of laid-off workers from state-owned enterprises and reemployment course.

Fourthly, actively carry out favorable policy for the entitled groups. After last year's adjustment of allowance standard for entitled groups, central finance department greatly rose the allowance standard for some entitled groups since the first of August.

Fifthly, great efforts are made in support regional government to improve lowest living security and secure the basic living of poor people. This year, central government continuously intensifies the investment of city lowest living security allowance, raising from 0.8 billion RMB in 2000 to 15.1 billion RMB in 2007, and the coverage is expanded from 4 million people in 2000 to 22 million people in 2007. All urban residents entitled to basic living allowances are now basically receiving them, and urban and rural workers with lower income are well secured of basic livelihood.

Sixth, further department and institute salary and income distribution system reform. According to the requirement of Official Law, it should clearly settle up the department and institute salary and income distribution relations, and basically set up its unique salary and income distribution system.

Jin Renqing points out, if we want to solve the problems of income distribution properly, we should further income distribution system reform and comb the relation of income distribution. Set up scientific and rational salary system by furthering reform; curb the chaos of income distribution and shorten income gaps among different regions and departments by regulating order; secure the basic livelihood for people with lower income in urban and rural areas and set up scientific and rational, just and fair social income distribution system by taking all factors into consideration. Only by those can we make sure to share achievements of reforming and economic development with most people.

Prosperous consumption, people's livelihood continue improvement

Since this year, the consumption market keeps hot with the income growth. As data from Ministry of Commerce, in the first half year, social consumables retail total amount rise up 15.4% year on year to 4204.4 billion RMB with 2.1% growth in its increment compared with the same period of last year, hitting a new record of highest increment. The real growth is up to 12.7%, much higher than economic growth.

From the changes in domestic consumption market, there are following features. First, the growth speeds up by month. Second, daily consumption increases stably. Third, urban and rural consumptions develop harmoniously. Four, regional consumption rises keep balance. And the last, consumption upgrade speeds up.

As Minister of Ministry of Commerce Bo Xilai said, in the first half year, Ministry of Commerce gives priorities to five issues to promote consumption.

Firstly, research and issue opinions on consumption promotion. On the basis of wide survey and research, it proposed the overall task and specific measures to expand consumption in commercial area.

Secondly, set up non-staple food market supply security mechanism. As to the rising price of meat, it directs some regions sign production and sale cooperation agreement in time to set up emergency system of production and sale mutual supports. It also intensifies survey and research on other main agricultural non-staple food to work well with produce and demand, and secure market supply.

Thirdly, give full play of information. Continue to improve urban market information service system, set up ministry, province, region and town level supervision steps, and form an information net covering urban and rural areas, home and abroad, stocks and futures. The supervision scope covers 21 province, autonomous regions and municipalities, 323 cities and more than 2000 towns with 14000 enterprises and 600 main consumables. It also set up public information service such as commercial weather report.

Fourthly, advance commodity market system construction. Promote markets into millions villages and towns in all respects. Till the end of June, it accumulated 203000 rural shops in rural areas covering 3/4 towns of the nation with 75 billion RMB rural consumption. And promote "Two hundred market project" which drives 10 billion RMB regional and enterprises' investment. In the first half year, 100 large sized agricultural products wholesale market trade amounts more than 160 billion RMB.

Fifthly, secure consumers' legal rights and interests. Carry out special renovation act in nonstaple food market, strike severely price fraud, short in weight and fraud products. Intensify the punishment to fake promotion and misleading consumption. Regulate promotion activities and purify consumption environment. Direct urban and rural residents consume scientifically and safely.

According to relative department introduction, in the second half year, the government will continue to expand consumption. Main measures are: timely adjust lowest salary and lowest livelihood security standard; set up reasonable salary growth mechanism for average staffs; promote rural commercial circulation net and service system construction, develop community service and enforce the supervision on consumable and service markets especially drug and food market supervision.

Bo Xilai points out that we should take consumption promotion as a systematic project, mastering accurately the change of residents' consumption development and make out effective promotion methods to expand consumption by all means.

According to the arrangement of Ministry of Commerce, the main task in the second half year is: firstly, promote rural families to expand consumption. Focused on markets in millions villages and towns, the government should set up rural daily consumption circulation net, and set up or renovate 250000 rural shops in the end of this year. Secondly, advance the consumption of urban residents to service consumption. Thirdly, continue to improve urban and rural market information service system construction, giving priority to the information direction for rural market and consultation service for rural families. Fourthly, further improve market consumption environment establishment. Enforce law and regulation establishment and standard layout, regulate market order persistently. Fifth, keep agricultural non-staple food supply in stable; give keen attention to the supply and demand and price change of grains, oil, meant, egg, milk, sugar and other necessaries. Bring full play of large sized enterprises to set up links between production and sale, and to expand market supply channels.


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