Economic Restructuring In Urban Unemployment Protection System

Unemployment is a social phenomenon under the condition of the market economy and one of the economic risks that could not be absolutely avoided by individuals or families. Since 1990's, the total population of laid off in cities and towns in China has been increasing and the rate of unemployment remains high. Therefore, the living guarantee and issue of reemployment of the laid off is a significant and tough task that Chinese government faces. The success of tackling the issue of unemployment guarantee has a lot to do with not only the sound development of national economy but also the social stability directly. From its establishment to present, although the system of unemployment guarantee in China has undergone two major adjustments, there are some weaknesses and as to its dealing with current and future problems of the unemployment guarantee, the system falls short of people's expectations. So, the amplification of the system of unemployment guarantee in China has a profound and far-reaching significance. Based on the reminiscence of the institutional dynamics and from the angle of the establishment and development of the system of unemployment guarantee in China, the paper introduces its historical background, follows closely its historical traces left by its continuous explorations and self-adjustments, and combined with the present situation, states weaknesses of the system of unemployment guarantee in practice. Finally, the paper points out the optimal direction that the current system should follow.The paper consists of four chapters. After the introduction, In chapter one, the author vertically observes the dynamics of the system of unemployment guarantee in China and referring to factors such as insurance coverage rates, ways of collecting insurance funds and treatment criteria, compares its orbits of changes. Adopting the general method of analyzing and evaluating the social policies and combined with the present situation in China, chapter two checks on various statements of the system's operation from the following four aupects to evaluate objectively thepolicies' effects: degrees of unemployment guarantee's meeting demands from various sides; statements of policies and relief funds in practice; granting unemployment relief funds and the development of reemployment trainings and services; impartiality of distributing funds. Transformation era means culture and socio-psychology in transition as well as economy in transition. So, in the unique era, the unemployment has unusual characteristics. Chapter three discusses the challenges to the system in transformation era from four aspects, i.e. the dominance of recessive unemployment, the population pressure, the impact on psychology and the influence of China's reentry into WTO and globalization. The unique situation calls on the system to improve itself. Chapter four puts forward advice and suggestions to the establishment and adjustment of the system from the angles of the fund sources and fundraising modes, the coverage rate and the management system, etc. in order to continuously strengthen the availability of the system and make it follow the changes of the social and economic situation, the market structure of work force and other sides, and to maintain the sustainable development of the system of unemployment guarantee.