From this year, labor security department materialized in all-around way the idea of scientific development, according to the arrangement of CPC central committee and State Council, we shall further strengthen the work intensity in expanding employment and re-employment, actively pushing forward the establishment of social security system and protecting the legitimate rights and interests of labors. New progress has been made in labor security work.

1. Good Beginning of Employment and Re-employment

According to the "95146" target task determined by CPC central committee and State Council, we formulated the special plan for employment and re-employment in 2005 to divide "95146" target task to the localities and required the local departments to divide the target task level by level and carry out the task in all aspects. During the 1st quarter, we arranged and carried out the two activities, "Aid Month for Re-employment" and "Spring Wind Action", targeted at re-employment of hard groups in cities and improvement of employment environment for farmer workers. With the efforts of all local governments, from January to March, the newly employed people accumulated to be 2.7 million, and we have completed 30 percent of target task., which is 5 million in the whole year. 1.1 million unemployed people were reemployed in China, completing 22 percent of the target task, which is 5 million in 2005 including 290 thousand people of "4050", completing 29 percent of target task, which is 1 million in 2005. The unemployed people who were registered in cities and towns amounted to 8.32 million, rising by fifty thousand persons over the preceding year, the unemployment rate has reached 4.2 percent, equal to that by the end of the preceding year.

(1)   The aid activities of re-employment had a strong pertinence and led to significant effects. A month between New Year's Day and Spring Festival, we made the local government to carry out activities, which made "Consolidating your employment, we make joint efforts" as the theme, and made "Sending policies, sending technologies, sending service and materializing social security subsidy policy" as the content, and made great efforts to help the hard groups to be re-employed. According to the inadequate statistics, during the aid month activity labor security departments at all levels printed and handed out 8.5 million leaflet of various policies, visited 4 million unemployed persons, developed 1.3 million posts for re-employment including 120000 posts for public interests, settled down 370 thousand unemployed persons including 140 thousand impoverished unemployed persons, supplied professional training derated to 310 thousand persons and cash in social security subsidies and post subsidies for more than 200000 persons engaged in public posts and flexible employment.

(2)   "Spring Wind Activity" was welcomed by farmer workers. Targeted at the characteristics for farmer workers to swarm into cities after Spring Festival, local government implemented outstandingly free employment service and carried out guiding training for labors in villages on the basis of concealing the restriction for farmers seeking for job in cities and unreasonable fees. Local governments also made investigation for employment demand of enterprises in spring at large, released the demand information of employment in time, guided the farmer workers to migrant orderly and seek for job in formal job introduction institutions through methods such as handing out the "Spring Wind Card". Meanwhile, we established the working mechanism of rectifying the order of labor market with departments of public security, human resources and industry and commerce, made overall inspection and rectification to the job introduction agencies, perfected the employment environment for farmers who entered cities for job.

In general, the contradictory of labor supply and demand, and the structure contradictory will not change essentially in China, especially in the middle and western region and old industrial bases, closed and bankrupted enterprises, the cities with exhausted resources and hard groups, the issue of employment are still outstanding. Next, we will fulfill all the policies decided by CPC central committee to push forward the employment and re-employment, all-around way, spare no efforts to complete the objective of employment and re-employment work in 2005. Firstly, further carry out the plan for employment and re-employment, and strengthen objective responsibility and supervision system. Secondly, carry out the supportive policies of re-employment. We will carry out "Policies Effect activities" in the 2nd quarter, urgent the local governments to take measures of reform and rectification, focus on supervise and guide the cities difficult to carry out the policies and developing slowly in the work. Thirdly, we will make full use of the" contact conference", continue to perfect the manipulation methods of related policies. At the same time, we must distribute the subsidy fund supplied by the central financial ministry as soon as possible. Fourthly, we will further strengthen the employment service. We will fasten to establish and improve the public employment service system, push forward systematically, specification, and socialization establishment all-around way, and will carry out "special service activities for skill post meeting" in China in the 2nd quarter. Fifthly, we shall hold meetings of talents with high skills, further perfect the policies, strengthen the building of high skill talents team, continue to make good employment service to undergraduates, organize employment training, caving out training, and transition employment training for farmer workers. Sixthly, we shall explore the long effect mechanism to promote the employment.

2. Continue to Consolidate the 2 Guarantees

During the 1st quarter, the basic life security of the unemployed in SOEs was continued to carry out. At the moment, half of the provinces in China have realized or almost completed the integration. Ended to the late of March, the unemployed in China has reached 1.49 million, declined by fifty thousand people over last year of which 820 thousand people entered the re-employment service center and sighed contract. All the unemployed who have signed the contract got fully basic life fees on time and handed over social insurance fees. The basic pension for retirees in enterprises in China has been realized to hand out fully on time. From January to March, we have handed out the basic pension for retirees who have take part in the insurance 99.2 billion RMB, local government has reported without defaulting at that time. With the rapid development of economy in part of regions, the deposit of the retirement pension fund enjoyed a big rise, had the ability to resolve the issue of historically defaulting of enterprises. From January to March this year, 8 provinces have handed out 840 million for the historically defaulting including 50,926,000 RMB in Hebei, 249,693,400 RMB in Gansu, 49,453,000 RMB in Hainan, 18,744,100 RMB in Yunnan, 6630,000 RMB in Guangxi, 5,980,000 RMB in Inner Mongolia, 850,000 RMB in Sichuan, 500,000 RMB in Guizhou, among these, Gansu and Yunnan province hand out 100 percent defaulting, Hebei hand out 81 percent, others will be handed out in recent time.

3. Push Forward retirement Insurance Stably

Ended to the late of March, 165.54 million people took part in the retirement insurance, rising by 1.49 million people over last year. The work of social management service for the retirees in enterprises developed stably, in the late of March, retirees of enterprises in China has amounted to 37.52 million including 34.85 million people who have got social management service, rising by 550 thousand people over last year, and the social management rate has reached 92.9 percent. Among which, 23.16 million retirees has been involved in the community management.

Next, we will study the plan to make individual account gradually, according to the arrangement of State Council, further perfect the retirement insurance system of enterprises. We shall improve the distribution, method of retirement pension in enterprises, standardize the collecting policies of independent industrial and commercial household and the flexible employees who took part in the insurance, improve the plan as a whole level of retirement insurance gradually, push forward the establishment of enterprises annuity system, study and make the reform plan of retirement insurance system in enterprises.

4. Unemployment Insurance Runs Stably

Ended to the late of March, 104 million 410 thousand people took part in the unemployment insurance including 4 million 110 thousand people got the unemployment insurance.

Next, we will continue to strengthen the working intensity of expanding the coverage, make the non-public owned economy and their employees as the focus of expanding the coverage. And we shall guide the regions which have not completed the task of integration to realize it through urgency and inspection, strengthen the control and restructuring of unemployment, make efforts to push the majority of provinces to release their working plans in the 2nd quarter. Before the late of this year, all the provinces must release their working plans. We shall pay attention to the forecast of the unemployment, grip the change of employment and unemployment conditions, study and make RMB measures, and guarantee the stable employment situation in regions. We are to perfect the policies related to settlement of employees in closed and bankrupted enterprises, guide the local government to push forward the work of closing and restructuring of SOEs, pay attention to the settlement of employees.

5. Medical Insurance and Birth Insurance Runs Orderly

By the end of March, 127.08 million people has taken part in medical insurance in China, rising by 3.04 million over last year including 92.38 million workers, 34.7 million retirees, rising by 1.93 million and 1.11 million respectively over last year; 44.88 million people participated in birth insurance, rising by 1.040 million over last year.

Next, we will continue to expand the coverage of medical insurance. We shall urgent  enterprises directly under central government to participate in local medical insurance, revitalize the enterprises belonging to the province and urgent the staff in non-public owned enterprises and flexible employees to take part in the insurance. We are to address the fund resource issue for retirees to take part in the insurance in closed and bankrupted SOEs, strengthen the study intensity for policies of protecting the medical insurance system and the management intensity of fund collecting, reviewing and expenditure.

6. Work Related Injury Insurance Develops Smoothly

Ended to the late in March, 70.09 million people took part in the work related injury insurance in China, rising by 1.64 million over last year. 290 thousand people enjoyed the work related injury insurance in China.

Next, push forward the participation of the high risk enterprises into insurance, make efforts to improve the expanding coverage in work related injury insurance; we shall perfect policies, complete the standard, smooth the system, improve the institution, strengthen the basic work of work related injury insurance, push forward the pilot prevention and recovery in work related injury; make efforts to publicize the training and theory research of work related injury insurance.

7. Social Insurance Fund Revenue Rises By a Wide Margin

Four fund including retirement insurance, unemployment insurance, medical insurance and work related injury insurance, has all maintained a relative rise by a wide margin. In the 1st quarter, the basic retirement insurance fund revenue in China amounted to 102.8 billion RMB, rising by 23.2 percent over last year, the unemployment insurance fund revenue stood at 6.7 billion RMB, rising by 13 percent over last year, medical insurance fund revenue reached 29.8 billion RMB, rising by 27.9 percent over last year, the work related injury insurance revenue was 1.6 billion RMB, rising by 62.2 percent over last year.

Next, we will make use of the chance of continued and rapid development of economy, continue to strengthen to collect social insurance fees and review the intensity, establish the credit system for enterprises to take part in insurance and handing over fees, continue to maintain the balance between revenue and expenditure and the trend of rise on the revenue being more rapid than that of expenditure.

8. Significant Achievements in Legislation and Protection of Rights

(1)   Push Forward the Work of Legislation Stably.

In January 2005, we have drafted "Labor Contract Law of PRC (draft)", now we are cooperating with legal departments to discuss it. We are organizing to draft the "Laws to Encourage Employment" and "Practices of Identification for Occupation Skill"                                     and made amendment to and released the "The Temporary Method of Identification for Management Institution of Enterprises Annuity" and " Some Regulations about Carrying out 'Labor Security Supervision Practice'".

(2) Further to strengthen the Labor Relationship Harmonization

Firstly, we will continue to push forward 3-party negotiation mechanism and collective contracting work. We have drafted "Working Suggestions of the Year 2005 by 3-Party Meeting on National Labor Relationships", and "Suggestions on the Further Strengthening of the Function of 3-Party Harmonization Mechanism". At present, we are preparing the 8th national meeting about 3-party labor relationships. Secondly, the job of dealing with labor relationships is continuously done. The construction of labor arbitration institutions is being done actively, especially in the northeast, east and south areas of China. Local governments are all carrying on the work of the prevention and intercession of labor disputes, and kinds of institutions are founded constantly, which causes the great development of the related institutions in communities, streets and villages. Thirdly, the research on the reform of the mechanism of the disposal of labor disputes and experimental work are done sequentially. On the proseminar held in March about the perfection of the mechanism of dealing with labor disputes, representatives from local regions exchanged and summarized their experience in the field.

(3) The job of paying off farmer worker's salaries is partly finished.

During December 1 of the last year and the end of this January, we have examined the condition of the payment of farmer workers' salaries with Ministry of Construction and All China Federation of Trade Unions. From the incomplete statistics of China's 20 provinces or cities, the arrears that has been paid back amount to more than 2 billion RMB, more than 10 million farmer workers are involved. By the first quarter of this year, more than 33 billion RMB defaulted before 2003 has been paid back, which amounts to 99% of the defaulted.

(4) Effects of the disposal of labor market are obvious.

From February 1 to March 31 of this year, we have neatened labor market together with the Ministry of Public Security and State Administration for Industry and Commerce. By March 15, 22 thousand employing units and job-introducing institutions have been investigated, among which 9,997 cases are dealt with, 2,606 correction notices are released, an amount of 1.714 million RMB are paid back to the job-hunters as compensation. 3,440 job-introducing institutions are canceled, and this prevents illegal activities in this field effectively.

Next, we will take the priority to protect the legitimate rights and interests of labors, focus on harmony the interest relationship of all social groups, concretely decline the labor disputes, and improve the harmony of labor relationship. Firstly, we shall continue to separate the main industry from supportive industry in SOEs and make settlement disposal for employees and their labor relationship in closing the bankrupt enterprises and restructuring in them. Secondly, we shall carry out the labor contract system, improve the signing rate of labor contract and strengthen to supervise the implementation of labor contract. Thirdly, we will continue to perfect 3 party negotiation mechanism of labor relationship; establish and perfect the collectivity negotiation and collective contract system. Fourthly, we will perfect the macro control and restructuring mechanism in salary distribution of enterprises, seriously deal with behaviors such as defaulting and decline the salary without any reason, and protect the legitimate rights and interests for farmer workers to get salary. Fifthly, we will strengthen to supervise the labor security and construction of supervising institution and the team of labor security, improve the laws enforcement level. Sixthly, we are to improve management and service for farmer workers to migrant for jobs, continue to clear defaulting salary of farmer workers, and further explore the establishment of long effective mechanism to preventing and solving the problem of defaulting. Seventhly, we shall standardize the labor market order and continue to fight against illegal job introduction agencies.

9. The Scientific Research in Labor Security has Gained New Fruit

In the past years, with the development of labor security, a group of new fruits were achieve in scientific research in labor security, this play an important supportive roll in the macro decision and operation in practice of labor security, In the 1st quarter of this year, through strict review from experts, 8 scientific research fruits have gained 1st, 2nd and 3rd prize of excellent scientific fruit of labor security minister. The scientific research project which was prized has 3 characteristics. 1st is the overall perspective, they all study labor security problem at the perspective of overall development of economy and society; 2nd is creation, they use modern methods, ways and tools at large to make scientific research; 3rd is with strong application, the transformation rate of scientific research fruits is high.