ABSTRACT

In the early years of economic reforms, rapid economic growth provided a relatively favourable employment environment for Guangzhou. Foreign-funded ventures, service industries, private enterprises, and self-employed workers increased rapidly in number, absorbing a considerable proportion of surplus workers from state-owned enterprises (SOEs). Over the years, the Guangzhou government has developed four measures to support the laid-off formal employees, based on relevant regulations of the central government. The most important measure was the development of a variety of employment promotion programmes, with preferential policies being designed to support surplus workers to begin their own economic activities or to get re-employed through their own efforts. Second, adjustments were made in labour policy to control and limit the in coming of non-local workers. Third, various programmes were implemented to provide support for laid-off formal employees, including the establishment of re-employment funds and re-employment service centres and stations. Finally, policies were developed to protect the basic living of laid-off formal employees.