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  
Vocational Training
In order to improve the skills of labours to ease the structural unemployment and
edge the comprehensive competition of the city, Shanghai labour & social security
department constructed a vocational training system of ˇ°information networking,
resource sharing, varieties of parties involving and market adaptationˇ± to meet
the requirement of marketizing and socialising vocational training. Through
training network, skills upgrading and testing, the training orientation and
instruction have been greatly enhanced.
 

At the end of 1997, Shanghai established a vocational training information management network to incorporate varieties of training agencies into it. Meanwhile, this training network is connected with job information network in the labour market, through which, the training agencies can been guided to develop training courses to meet the demand of the market, while the job agencies can provide keen career counseling to job seekers to promote the match of training and employment. From 1998 to 2002, 491 training agencies were incorporated into the training network, optimising the utilisation of training resources. These training programs cover 364 professions in total. Additionally, through the training network, the government issues bids for training programme to training agencies to realise "government purchasing training result system"and tracks the training quality of training agencies.The year 2002 is the second year of launching the program of training one million workers in the Tenth-Five Year Plan. In this year, over 200,000 workers participated in training courses, of whom, 52.4% were reemployed.

 

In order to address increasing
youth unemployment, in 2002,the
labour & sociaI security departmant
initiated the youth apprenticeship
training program. Under the
program, young people can have
job placement with the enterprises
for 3-6 months so that they can
accumulate working experiences,
improve skills and foster spirit of
professional commitment.

By the end of 2002, there are 118
apprenticeship training bases,
receiving 4736 young trainees, of
whom 1838 have finished the
program, with 677 being employed

   
  Based on the national and local vocational qualification standards, the skills of labours are tested. If passed, the test sitters are awarded corresponding qualitication certificates. The skills testing plays a key role in orientating and improving training activities. The skills testing mainly focuses on sitting up a test bank, constructing a team of qualitied assessors and establishing the authority of qualification certificates. UP to now, among the 412 -profession skills tested, a 250-profession-skill test bank has been established, with a capacity of more than 3.2 million test questions;275 social assessment centers with 1620 assessors carrying out skill testing. 250,000 qualification certificates have been awarded. Now, the qualification certificates have become passports on labour market  
   
  To the meet the demand of social
and economic development of
Shanghai for vocationaI training,
Shanghai initisted a skills upgrading
model, "1 +X" (1 refers to the
national qualification standard,
while X refers to upgraded standard
keen to Shanghai economic and
social development) to upgrade
training materials, fieldwork
equipment and training means so
as to foster multi-skilled, initiative
and enterpreneur-oriented workers.