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China faces challenge of employing millions of college graduates cabinet

2011-06-02 15:46:11Source:XinhuaAuthor:

The State Council, or China's cabinet,acknowledged that the country faces a heavy task in creating jobs for millions of college students who will graduate between 2011 to 2015, as it forecasts a steady increase in the number of graduates over the next five years.

Graduates are encouraged to seek job opportunities in less-developed regions or to become self-employed, according to a circular issued by the State Council on Tuesday.

Local authorities are required to adopt supportive policies to help college graduates find jobs, the circular said.

According to the Ministry of Human Resources and Social Security, China will have about 6.6 million college graduates in 2011. Last year, the figure was 6.3 million.

The task of finding jobs for college graduates will be difficult because of the large number of upcoming graduates, as well as the fact that many graduates' expectations for jobs do not match market demands, according to a statement from a State Council meeting on May 25.

The State Council said that the government will give loans and tax cuts to graduates who wish to run small businesses.

College students who start their own businesses upon graduating can obtain loans worth up to 100,000 yuan (about 15,380 U.S. dollars) and their annual taxes will be cut by 8,000 yuan for the first three years following graduation, according to the circular.

The State Council has preferential loan policies in place for small-sized labor-intensive companies that are willing to help ease the employment situation.

University graduates are advised to take internships and undergo further vocational training in order to improve their job prospects, the circular said.

College graduates will be more likely to be recruited by state or provincial-level departments or agencies if they have worked in grassroots communities such as villages, according to the circular.