Summary: | In recent years, as China's reform of state-owned enterprises (SOEs) has gathered momentum, the number of workers made redundant has been rising. Until now, the dismissals have affected only a fraction of the "surplus labour", which has been estimated at 20-25 per cent of total industrial employment in SOEs. If concerns for social stability have so far dictated a gradual approach to SOE restructuring, the heavy fiscal and financial burden of loss-making SOEs has forced an acceleration of the process. Thus, far more sizeable layoffs from state enterprises could be expected in coming years. The growth of the non-state sector has opened new job opportunities for some SOE laid-off workers. By easing the re-employment of redundant workers, a further development of the non-state sector is an important condition for a smooth restructuring of the state sector. Measures to promote further development of the non-state sector include removing remaining discrimination against the private ..
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