While the nation fumbles to find solutions for China's ever-serious unemployment issue, community service is coming to the rescue, indicates a special survey on employment potential by the National Bureau of Statistics (NBS).

The survey, involving 244 communities, indicates more than 37,000 new jobs are expected this year, up 14.1 per cent from last year.

In contrast, a similar NBS survey, involving 2,262 enterprises, indicates 20 per cent of firms plan to increase their payrolls this year.

That means 150,000 new jobs are expected, up 10-per-cent compared with last year.

Breaking down the NBS community survey, 230,000 people were employed in 244 communities in 2002, up 30 per cent from 2001.

Among them, the number of firms in some way involved with family services increased 43 per cent. Meanwhile, the number of people involved in property management grew 22 per cent.

Nearly 60,000 laid-off workers found their jobs with community-based organizations in cities, which accounted for 31.4 per cent of the newly employed population.

Surprisingly, western China outperformed other regions in exploring employment opportunities in communities.

Some 45,000 people were newly employed in 2002, up 38.7 per cent over the previous year. That surpassed the 24.9 per cent and 34.2 per cent, respectively, for the eastern and central regions.

What's more encouraging is community services will continue creating new jobs this year.

The report also indicates employment rates have grown faster in small and medium-sized enterprises (SMEs).

Employment in SMEs rose 8.2 per cent, almost double the 4.4-per-cent rise in large enterprises.

Non-State-owned enterprises surpassed State-owned firms in creating new jobs.

Private enterprises, in particular, expanded, on average, their workforces by 14 per cent in 2001 and 2002. Meanwhile, job creation at State-owned and collective enterprises, which used to dominate the labour market, slowed due to ongoing and painful restructuring.

There was strong job creation in labour-intensive sectors. Employment in the processing of agricultural products and byproducts and the service-related sectors closely mirrored daily life.

Job creation in the textile, apparel and shoes and headgear sectors increased 13.2 per cent, 18.8 per cent and 11.2 per cent respectively.

These sectors significantly outpaced the average 5-per-cent job creation growth in the national economy.

Also, the survey indicates job creation is closely linked with economic development.

China's relatively well-off eastern region experienced 8.6 per cent growth in job creation, compared with 2.1 per cent in central China. In western China, which is undergoing active development, posted a modest 4-per-cent rise.

The report found community services should be encouraged and fostered to ensure China's full employment potential is tapped.

The property management sector - a recent phenomenon that includes cleaning, landscaping and protection services - could experience momentous expansion this year.

Some 2,000 property management companies are expected to be established this year, up 18.7 per cent over 2003. They are expected to hire 17,000 people, up 15.2 per cent.

Family services, such as housekeeping and baby-sitting, are in great demand, due largely to the fast pace of bustling urban life.

It is estimated nearly 6,000 family services companies will be created this year, 900 more than last year, and they are expected to employ 35,000 people, up 23.5 per cent.

The situations in the health services, legal services and life amenities sectors are similar.

Residents are eager to have more community libraries, gyms, hair saloons and beauty parlours.

The survey indicates another 8,000 companies providing health services will be founded this year, up 14.89 per cent over the previous year. They are expected to employ more than 20,000 people, up 20 per cent.

Looking at the bigger picture, the booming tertiary industry offers great potential.

The industry is expected to grow 10-plus per cent this year.

In contrast, the secondary industry has reached the point where restructuring is urgently needed before it can move on. It's expected to increase 10 per cent.

Private enterprises might emerge as the main channels in absorbing new employment, with an expected 22.5-per-cent increase. Foreign-funded enterprises follow behind at 19.6 per cent, compared with a meager 4 per cent for the State-owned enterprises (SOEs).

In general, about 20 per cent of the 2,262 enterprises surveyed said they would hire a combined 150,000 more workers, up 10 per cent, this year.

The situation is encouraging for the 244 communities, as 37,000 positions will be available, up 14.1 per cent over 2003.

Yet, some problems remain. For example, the number of unemployed workers is rising fast, despite the job creation.

Some 80,000 employees were laid off in 2001 and 2002 by the 2,262 enterprises surveyed. Another 40,000-plus employees are queuing for possible positions.

In the mining industry, the number of employees waiting for assignments doubled in 2002 from 2001.

Unbalanced supply and demand in the labour market complicates the situation.

About 70 per cent of the positions available in the 2,262 firms surveyed are open for applicants under age 30; 70.6 per cent of the positions require at least a high school education; and more than 30 per cent require professional titles.

However, the supply pool is mainly made up of middle-aged, laid-off workers and applicants without much training.

Besides, long-standing mistaken employment concepts remain entrenched. These mistaken ideas - identified as unqualified for demanding jobs while disdainful for trifles; running after secure positions while giving a cold shoulder to temporary jobs; resting on the social welfare system rather than eating out of one's own hands - impede people from earning possible bread.

The survey shed some light on how these thorny issues can be solved. For starters, the economic efficiency of enterprises should be improved.

Expansion of enterprise scales, technical advancements and readjustment of product structures will contribute to the growth of employment, by 32.2 per cent, 16.8 per cent and 15.4 per cent respectively.

Moreover, providing training programmes to job seekers will also help. Programmes targeting the specific requirements of various enterprises will equip job hunters with the skills needed in the labour market.

Job seekers should consider taking temporary jobs in private enterprises or become self-employed.

While governments at all levels are strongly advised to do their jobs, one should not have to look beyond his/her community for a new job.

What can be done? People must adjust their mindsets - and take the first step.

The author is a senior expert with the National Bureau of Statistics.

(Business Weekly 01/13/2004 page1)