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6. Energetically developing social programs and vigorously ensuring and improving the well-being of the people

This year we will concentrate on accomplishing major tasks that are urgently needed in economic and social development and directly related to the vital interests of the people to improve their well-being.

We will do everything in our power to stimulate employment. We will make full use of the role of the service sector, labor-intensive industries, small and medium-sized enterprises, and the non-public sector of the economy in creating jobs. We will implement a more proactive employment policy, and the central government will allocate 42 billion yuan for this purpose.

First, we will give high priority to facilitating the employment of university graduates. Graduates who take jobs in public administration and public services at the community level in urban and rural areas will receive social security benefits and position subsidies. Those who either take jobs in villages or enlist in the army will receive tuition reimbursement and have their student loans forgiven. We will encourage institutions of higher learning, research institutes and enterprises undertaking key research projects to recruit qualified university graduates to do research work. Enterprises recruiting such graduates will receive relevant employment policy support from the government. We will speed up the establishment of startup industrial parks and incubation bases that require less investment and yield quicker results where college graduates can start their own businesses.

Second, we will expand employment opportunities for rural migrant workers in cities while stabilizing their existing jobs. We will stimulate their employment through government investment and the launch of major projects. We will encourage and help enterprises that are in a difficult situation to prevent layoffs by renegotiating wage levels with their employees, adopting flexible employment and work hours, or providing job training for them. We will increase the export of organized labor services and guide the orderly flow of rural migrant workers. We will arrange for those that have returned to their home villages to take part in the construction of local public facilities.

Third, we will help urban residents experiencing difficulty finding work, members of zero-employment households and workers in disaster-stricken areas find jobs. We will create more public-service jobs.

Fourth, we will vigorously support individuals in starting their own businesses or finding jobs on their own, thus expanding employment by creating new businesses. We will adopt facilitating and preferential policies concerning market access, taxation, financing and land use to encourage more workers to become entrepreneurs. We will further lower the barrier for individuals, including rural migrant workers who have returned to their home villages, to start their own businesses and lend them more support in this area.

Fifth, we will further improve public services for employment. We will improve the release of employment information and provide more effective career and employment guidance. We will vigorously develop vocational training. We will increase policy support for skills training for rural migrant workers and urban residents experiencing employment difficulty.

We will move faster to improve the social safety net.

First, we will press ahead with institutional development. We will improve the basic old-age insurance system, continue to carryout the pilot projects to fully fund personal accounts for old-age insurance, and comprehensively carry out planning at the provincial level. We will formulate and implement a method for old-age pensions for rural migrant workers. The pilot projects for establishing a new type of old-age insurance system for rural residents will cover approximately 10% of the counties and county-level cities in the country. We will introduce a method for transferring old-age pension accounts for workers moving from one region to another, and improve the systems of unemployment, workers' compensation, and maternity insurance. We will improve the urban and rural social assistance systems.

Second, we will expand coverage of social security programs, focusing on coverage for employees in the non-public sector, rural migrant workers, farmers whose land was expropriated, people with flexible employment arrangements and freelancers. All rural residents entitled to cost of living allowances will receive them. We will increase funding for the national social safety net through multiple channels. We will strengthen supervision of social security funds to ensure their safety.

Third, we will increase social security benefits. We will continue to raise the basic old-age pensions for enterprise retirees by an annual average of about 10% per person for the next two years. We will continue to increase unemployment insurance benefits and workers' compensation. We will extend greater financial support to both urban and rural recipients of cost of living allowances and to childless and infirm rural residents who receive subsidies for food, clothing, medical care, housing and burial expenses, and increase subsidies and living allowances to members of entitled groups. We will vigorously develop social welfare and charity programs. The central government plans to spend 293 billion yuan on the social safety net this year, up 17.6% or 43.9 billion yuan over the estimated figure for last year. Local governments will also increase funding in this area.

We will continue to give priority to developing education. This year we will formulate the Outline of the National Medium- and Long-Term Program for Education Reform and Development to make comprehensive arrangements for education reform and development in China through 2020. This year, we need to focus on the following five areas.

First, we will promote fairness in education. We will implement free compulsory education policies for both urban and rural areas well. We will increase public expenditures on rural compulsory education to 300 yuan per primary school student and 500 yuan per junior secondary school student. We will progressively ensure that children of rural migrant workers have access to free compulsory education in the places where their families have relocated. We will increase living allowances for rural students receiving compulsory education who come from poor families and stay in school dormitories. We will strive to basically clear the debts incurred in providing nine-year compulsory education in rural areas within three years. We will improve the national financial aid system for students and increase financial aid for secondary vocational school and university students from poor families to ensure that everyone enjoys equal opportunity to receive education and that no child is denied schooling due to financial difficulties.

Second, we will optimize the education structure. We will energetically develop vocational education, with the focus on supporting rural secondary vocational education. We will gradually make secondary vocational education free, beginning this year with rural students from poor families and students studying agriculture-related subjects. We will continue to improve the quality of higher education, d

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