Iron rice bowl or not, civil service jobs are in hot demand.

The Chinese government is considering putting an end to the system of lifelong employment that has long been the hallmark, and the bane, of civil service. But that does not make government jobs any less attractive to the seven million college graduates who are seeking employment this year.

Handsome housing subsidies, permanent social welfare, and good social status are some of the obvious reasons that civil service jobs remain popular, especially at a time when the unemployment rate is soaring and private companies are laying off workers.

Competition for civil service jobs is cut-throat. About one million candidates applied for the 2009 national civil services examination, an increase of 25 percent over last year, according to the Ministry of Human Resources and Social Security. But less than two percent of these applicants will be rewarded with a job.

Stability is an attractive factor when college graduates seek a job. The low dismissal rate for civil servants, around 0.05 percent according to the Ministry of Personnel, means that the job is basically risk-free.

The new rules proposed by the Ministry of Human Resources and Social Security would end lifelong employment in the civil service and transform it into an incentive-oriented and performance-driven meritocracy.

While many companies are cutting wages and benefits to get through tough economic times, the salary of civil servants is increasing in some parts of China. Civil servants in Henan province were given a monthly increase of 300 yuan in their allowance and subsidies, the Economic Observer recently reported.

Some analysts believe the popularity of civil service jobs reveals an imbalance in the distribution of pay and other benefits. Job security and high pay are drawing talented college graduates away from the private sector, resulting in a brain drain, they say.

Curbing unemployment and ensuring that university graduates find jobs have become one of the main goals of the $586 economic stimulus plan. The issue is also a top priority at the annual meeting of National People's Congress (NPC) and the Chinese People's Political Consultative Conference (CPPCC) this month.

The registered urban unemployment rate, which excludes migrant workers, is forecast to hit 4.6 percent in 2009. But some economists believe the real unemployment rate could be twice as high.

The government has taken steps to help university graduates, including training programs, financial support for start-ups, and incentives to work in smaller firms and rural areas.

(China Daily 03/09/2009 page6)