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Hubei aims to boost consumption, jobs

By Gong Zhengzheng (China Daily)
Updated: 2009-01-14 07:33

WUHAN: Hubei will do everything possible to create jobs, stabilize employment rates and boost consumption, Governor Li Hongzhong said Tuesday.

Li said the province intends to create 600,000 new jobs and stabilize unemployment at under 4.6 percent in urban areas this year to counter the impact of a slowing economy,

In his work report to the second session of the 11th provincial people's congress, Li said the provincial government also plans to train 800,000 rural laborers and help them return to work this year.

"We will encourage people to start their own businesses and improve the environment for their business startups," Li said.

A 500-million-yuan ($73 million) special government fund has been earmarked as micro credits for 50,000 people in the province to start their own businesses this year, expected to create a total of 200,000 new jobs, according to local authorities.

The provincial government also intends to spend 100 million yuan to create 20,000 new posts in the public welfare sector this year for urban residents who have difficulty in finding jobs.

Li said Hubei, with a population of more than 60 million, is facing pressure to create jobs due to the economic slowdown in the province and in coastal areas.

"More small and medium-sized enterprises are halting production and more migrant workers are returning to their hometowns (in Hubei)," he added.

He said the government will also take steps to reduce the burden on businesses to help stabilize employment.

Li predicted that Hubei's GDP would grow 10 percent this year, lower than the 13 percent plus last year. In 2008, the GDP exceeded 1 trillion yuan for the first time.

The government will expand investment to boost the economy.

Li said fixed asset investment in the province will reach as much as 775 billion yuan this year, up from 579.8 billion yuan in 2008.

He stressed that the government will find every way to boost consumption in areas such as the auto industry, housing, home appliances, tourism, sports and culture.

Retail sales in Hubei should jump by 16 percent this year, from almost 497 billion yuan in 2008, he said.

Li said the government will also work to boost exports in emerging markets such as the Middle East, Africa, South Asia, South America and Eastern Europe.