Since 1990s, Shanghai has speeded up economic transformation. Large-scale industrial restructuring and State-Owned-Enterprise (SOE) reform were carried out. The industrial structure has thereby been rationalised, so has the employment structure. The employment in the primary and secondary industry has been lowered gradually, while it has increased in the tertiary industry. Currently, the tertiary industry has become the main absorber of labours.With industrial restructuring and SOE reform, a magnitude of surplus labours were released to the labour market. Meanwhile, with the positioning of employer and employees as the actors on the labour market, the marketable employment system gradually substituted for the old mechanism of the government allocating labour resources. In addition, the hidden unemployment becomes visible. As a result,the number of the registerde unemployed and unemployment rate have been increasing steadily.In recent years, centering around the market-oriented employment system, Shanghai has initiated and carried out proactive labour market policies

 
Employment Service
  Currently, Shanghai set up 435 job agencies, of which 313 are public ones. 40 agencies (including branches) under the labour & social security department have been incorporated into "Shanghai Labour & Social Security Information System" to provide up-to-date job information. The computer network has been extended to more than 100 communities. Any employers and job seekers can get the updated job information at any of the agencies connected. In addition, there are over 2000 career counselors providing one-to-one service, which greatly promotes the matching between the employers and job seekers.