Monday, December 22, 2008

China premier urges firms to avoid cutting jobs

Chinese Premier Wen Jiabao has urged companies to "do everything possible" to maintain their workforce amid the global downturn, state media said on Tuesday.

During a two-day visit to the southwestern city of Chongqing from Sunday, Wen expressed great concerns about the fallout from the global economic crisis, the China Daily said.

"Companies must not lay off workers easily," Wen said to the city's carmaker Changan Group, which may cut more staff over the next four months after sales declined in November.

"The automobile industry has a long industrial chain and it is an industry the government should strongly support," he said.

Rising unemployment has fed fears of unrest as forecasts for China's growth next year fall below 8 percent. Urban umemployment has risen to about 9.4 percent, double the official figure, the Chinese Academy of Social Science said in a report last week.

Chongqing -- home to millions of migrant workers who have been the backbone of cheap labour which has fueled China's export-driven boom -- has had tens of thousands flood back after being laid off due to cuts in factory orders from the United States and Europe.

Wen said personnel should be cherished, not only by companies but also by the government.
"Human resources are a fundamental competitiveness. While the economy worsens, we should treasure the professionals more," he said.

Wen also encouraged students at Chongqing University to be optimistic about job prospects after he reassured university students in Beijing, as reports said a quarter of 6.1 million college students could have trouble finding jobs.

Wen said it was a prime task to maintain stable and relatively fast economic development and take more direct, powerful and effective measures to implement central policies to meet domestic demands and promote growth in a substantial way.

"Next year, it is the most important target to stop the declining trend of economic growth," he said

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