Despite an economic boom, Beijing's unemployment woes are getting worse.

The Chinese capital, which has seen double-digit economic growth for years, is also struggling to deal with a jobless population estimated to hit 290,000 by the end of 2004. That number is 20,000 more than predicted.

The swelling unemployment numbers are, in part, the result of new government policies which take into consideration people not counted before, said Song Fengjing, vice-director of the Beijing Labour and Social Security Bureau. Among them are farmers whose land was requisitioned for construction and the handicapped who still have work ability.

Song said there are an estimated 15,000 farmers and 5,000 physically challenged persons who will be considered jobless by the end of the year.

To cope with the increasing number of jobless people, the bureau has developed a series of measures, including soliciting projects to help the jobless become self-employed.

The bureau put forward the first batch of 47 such projects earlier this month.

Most of the projects are small with an average investment under 100,000 yuan (US$12,000).

With the support of low-interest loans, at least 1,000 unemployed people are expected to be self-employed by the end of this year. In turn, they may create 10,000 new job opportunities, according to the bureau.

Song said the long-term goal of the bureau is to help 5,000 unemployed people become self-employed, running their own small businesses, which will in turn create 50,000 new jobs yearly.

The bureau has given top priority to helping jobless women over 40 and men over 50 - known as "4050" - find new jobs.

This group is in a particularly vulnerable position due to age, low technical skills and specific knowledge.

It is estimated that the number of "4050" jobless will reach 50,000 by the end of this year.

The re-employment rate of this particular group was only 29 per cent in the first half of this year, much lower than average of 50 per cent.

The bureau said on Saturday that any work units that employ "4050" persons and offer a three-year or longer labour contract can get a subsidy of 5,000 yuan (US$600) per person from the city's re-employment fund.

Meanwhile, "4050" persons can take precedence to get public service posts which are funded by the government.

The bureau has also set up a special employment aid system for the "4050" group to help them find new posts and provide job training and policy consultation.

The bureau has helped a total of 41,000 "4050" persons get new jobs between the beginning of last year and July this year.

(China Daily 09/21/2004 page3)