Demand for employees by Chinese enterprises has been recovering since the beginning of this year, thanks to the country's improved macroeconomy.

The business climate index measuring labour demand reached 77.1 points during the first quarter and 88 points in the second quarter, the best in recent years, according to Lin Tao of the National Bureau of Statistics.

But this does not necessarily mean employment has absolutely increased, said Lin, deputy chief of the bureau's Business Survey Division. "It simply means the falling demand for labour resources has been eased."

Official figures indicate that China's unemployment rate was about 3 per cent in 1999. But insiders said the rate would be higher if laid-off workers were considered.

The improvement in the employment situation was mainly a result of the country's excellent economic performance, Lin said, adding the country's gross domestic product grew 8.2 per cent year-on-year during the first six months.

The pro-active fiscal policy which resulted in expanded infrastructural construction created more jobs.

The reform of State-owned enterprises and the social security system, as well as the rapid development of non-State-owned enterprises, also contributed to the improved employment situation, Lin said.

The improvement is beneficial to increasing people's confidence, mobilizing people's initiative and promoting the country's reforms, he said. But the improvement is in the initial stage.

"China should give key attention to creating jobs and to reducing unemployment pressure to develop its economy," he said.

Zhang Xueying, a think-tank expert with the State Information Centre, said figuring out how to create jobs is one of three major hard nuts that the Chinese Government needs to crack.

The other two are how to increase farmers' incomes and how to establish a sound social security system, he said.

Li Yizhong, president of the China Petrochemical Corp, one of the country's oil giants, said the corporation will intensify its efforts in technical upgrading and in reducing production costs during the second half of the year.

The corporation, which aims to list on an overseas stock market, doubled its profits to 6.7 billion yuan (US$807 million) during the first half of the year.

"Generally speaking, the oil sector is expected to have upbeat prospects this year," Li Yongwu said.

"The country's rapid economic growth, which resulted from the central government's active fiscal policies, also stimulated domestic demand for oil products," Li said.

The country's oil product demand increased by 5.5 million tons to 54.5 million tons during the first six months.

The country's gross domestic product grew by 8.2 per cent during the period.

The oil sector closed 111 small oil refineries each with an annual capacity of less than 1 million tons of production during the period, contributing considerably to reducing the surplus in the country's oil refining capacity.

Li estimated that 200 million tons of crude oil will be processed this year.

He said the central government's continuing efforts to control oil product imports and to boost exports, and the government's suspension of oil product imports about two years ago led to this year's successes.

A 15 per cent export-tax rebate also encouraged domestic oil refineries to export more oil products.

During the first half of the year, oil product exports rose by 40.3 per cent to nearly 3.3 million tons.

2000-8-10 17:04