ABSTRACT
Since economic reforms started in 1978, China has taken three steps to develop its unemployment insurance. The first locally based unemployment insurance programme was established in China around 1986, in accordance with the State Council Document 77, which required local governments to set up unemployment insurance in SOEs. The primary purpose of the unemployment insurance programme established by Document 77 of 1986 was to facilitate reform of the state-owned enterprises. The implementation of Document 110 of 1993 was an improvement over the unemployment insurance programme established by Document 77 of 1986 in that more unemployed persons managed to receive the appropriate benefits. In summary, unemployment has emerged in China in three alternative forms at different times; surplus employees, laid-off formal employees and the unemployed. In mid-1990s, the goal of economic reforms in China was defined as one to establish a socialist market economy, and enterprise reforms have since been focused on the establishment of modern enterprises.
