China Vows to Create at Least 11 Million Jobs This Year

*China’s working-age population is estimated to grow by some 15 million to 16 million in 2018
*Country needs to create 11 million to 13 million new jobs this year to keep the employment level steady

China aims to create at least 11 million jobs this year to accommodate millions of fresh graduates, workers laid off by overcapacity cuts and farmers flocking to cities in search of work, according to Premier Li Keqiang.

China’s working-age population is estimated to rise by 15 million to 16 million this year, including a record 8.2 million college graduates. To keep the urban unemployment rate low, the country needs to create 11 million to 13 million new jobs this year, Li told a news conference in Beijing Tuesday.

On top of the record number of university graduates, there will be 1 million demobilized army personnel and hundreds of thousands of factory workers laid off as a result of trimming China’s industrial overcapacity, according to the premier, who was elected to a second five-year term on Sunday.

“We must strive to guarantee jobs for them and should absolutely not allow families where no member is employed to exist,” he said. “This requires us to create more jobs, particularly by nurturing new industries.”

His administration will publish a monthly survey report on unemployment rates in urban areas, which will take into account unemployment among migrant laborers for the first time. It is “aimed at fully reflecting the jobless situation in both urban and rural areas,” he said.

The government will also extend the serious disease insurance program to at least 3 million more people this year to address the issue of poverty caused by staggering medical bills, according to the premier. About 17 million people from poor families were covered under the program at the end of 2017.

The state will make more funds available to subsidize the government-supported medical insurance program, and half of the increase will be used to fund claims via the serious disease insurance program, which will benefit patients who suffer from a broader range of serious illnesses, he said.

More than 40% of the families who have fallen below the poverty line in China said they lost their income and wealth due to illnesses as they do not have proper health insurance, according to Liu Yongfu, head of the Leading Group Office of Poverty Alleviation and Development under China’s cabinet.

As of the end of last year, China had 30.5 million people living on less than $1 a day, down by 13.7 million from a year earlier.

Contact reporter Li Rongde (rongdeli@caixin.com)