CHINA is unlikely to resolve its severe unemployment problem over the next five years, the State Planning Commission admits.
Although the central Government is committed to creating more jobs, a report by the commission predicts the number of unemployed will reach 20 million by the end of 2000.
Three-quarters will be workers laid off from state-owned companies, with the remainder from state-subsidised units.
In the report, economists admit the problem will be difficult to resolve as China is still struggling to reform its state sector and at the same time maintain a relatively fast economic growth rate. Both factors would lead to the laying-off of more workers, they said.
About 10 million workers were laid off in 1992 and 1993 as state firms adopted more advanced technology, and such firms' demand for workers was expected to continue to fall in the next five years.
Experts say workers laid off from ineffective and bankrupt state-owned or state-subsidised firms have put a heavy burden on the shrinking job market.
