Premier Zhu Rongji has emphasised the need to maintain stability by safeguarding the livelihood of jobless workers and people in other disadvantaged sectors.
Mr Zhu celebrated Lunar New Year with workers, police and flood victims in Hubei province, which has been hit by labour unrest.
'All levels of government must give priority to safeguarding the basic livelihood of laid-off workers and finding jobs for them,' Xinhua quoted Mr Zhu as telling local officials.
The Premier said it was unavoidable that in the course of reforming state-owned enterprises some labour had to be shed.
But he urged the relevant authorities to use 'a thousand ways and means' to make sure the unemployed did not go hungry.
Mr Zhu also indicated that pensions of retired workers should be paid promptly.
Visiting farmers displaced by the floods, Mr Zhu said: 'President Jiang Zemin and other party and state leaders are deeply concerned about your life during the winter season.