The challenges ahead

"The slowdown in China's economy is expected to bring challenges to the employment status, which requires preparation on both the macro and micro level," said Vernon Bryce, director of the human resources specialist Kenexa Ltd.

On the micro level, companies are expected to "react quickly to the changing situation" by creating new employment models, such as mixed full- and part-time working, to improve "employment engagement" and reduce labor costs, he said.

Manpower Group, the workforce solutions and services provider, said in a survey released in April that a mere 3 percent of the 4,242 companies questioned choose to cut jobs in the third quarter, while others plan to stabilize their workforces or employ more staff.

Many companies said they are opting for a wide range of solutions to address the problem and ride out the economic slowdown.

"High-tech companies like Juner set a high threshold on recruitment, so we don't often cut jobs in a massive way unless performance is very bad," said Chen Xiaomin, chairman of Zhejiang Juner New Material Co, which has reduced the cost of raw materials and laborers and recruited more experienced and qualified staff.

The company has also "renewed its performance evaluation system," to reward the best performers and encourage staff to innovate and improve product quality.

Many foreign companies have adjusted their employment strategies. In response to a relatively rapid decline in client numbers, KPMG, the global accountancy company, has instigated a reward system for high-quality employees and designed a rapid-promotion passageway to encourage staff. Meanwhile, Siemens AG, the electrical engineer, is "paying more attention to the development of talent as the economic environment changes".

Government policy

Yin, from the Ministry of Human Resources and Social Security, said China will undertake "active" polices, such as providing more training, providing better public services and allowing favorable tax policies to help promote employment. The ministry will also consider temporarily lowering enterprises' social insurance premiums to ease the burden.

As the country accelerates the transformation of its economic-growth mode, skilled workers in sectors such as high technology, new energy and modern services are in great demand.

There is a "mismatch" between the supply and demand in the job market, and the government should take more measures to foster talent in those sectors, said Bryce from Kenexa Ltd.

Economists also expect the government to implement policy easing to stabilize employment and maintain social stability. "Currently, unemployment is not a problem despite second quarter GDP growth dropping to 7.6 percent," said Zhang Zhiwei, chief China economist with Nomura Securities.

Vice-Premier Li Keqiang said this month that China should implement structural tax reductions and encourage and guide private investment, according to Xinhua.

In July, the country announced the second reduction in interest rates in a month and has lowered the reserve requirement ratio the amount that banks must set aside as reserves - three times since November to boost lending.

Chen Xin in Beijing contributed to the story.

Contact the reporters at dingqingfen@chinadaily.com.cn, chenjia@chinadaily.com.cn and yuran@chinadaily.com.cn