ABSTRACT
The conversion from a planned economy to a market economy is a Copernican transformation that is leaving many Chinese confused. Causing them greatest disquiet is the concept of unemployment. Unemployment is a feature of capitalism, but it is supposed to be nonexistent in the socialist system. In a market economy, the unemployed provide a labor pool. The China Statistical Yearbook 1997 offers figures for jobseekers and the reemployment ratio as of 1996. Minister of Labor Li Boyong, in his first interview at the beginning of 1998, revealed that 8-10 million new layoffs were expected in 1998. In 1986 the "Provisional Regulations Governing Waiting for Work Insurance for Workers and Staff of State-Run Enterprises" were promulgated. This was the original form of unemployment insurance. Under the 1993 regulations the main labor management departments at each level of government take direct responsibility for managing unemployment insurance.
