China will further promote healthy development of its private enterprises to create more jobs in the next five years, Vice Premier Zhang Dejiang said on Sunday in Beijing.
"The government will continue to implement active employment policies, give full play to these firms that employ the majority of workforce and help private entrepreneurs create more stable jobs," Zhang said in remarks at a ceremony to honor the country's most productive private firms in terms of employment generation.
Zhang believes it is crucial to substantially improve mechanisms for resolving labor disputes and safeguard the rights and interests of workers in accordance with the labor law.
A total of 176 private firms, including A-share listed Guangdong Baolihua Group and industry leaders Shanghai Huiyin Group and Tianjin Baocheng Machinery Group Co, were commended on Sunday for their contribution to job creation.
China's private companies have surpassed State-owned enterprises in many indicators, especially employment creation and tax payments, according to the All China Federation of Industry and Commerce (ACFIC).
"One-in-five employees in the country works in the private sector," said ACFIC Chairman Huang Mengfu, revealing that more than 7 percent of the nation's new jobs was created in the private sector this year.
"Most companies are challenged by higher employment cost and staff turnover rate compared to the State-owned enterprises as the former sometimes face heavier tax burdens, fiercer competitions, and little access to upstream industries dominated by State-owned giants," Zhao Wei, deputy director of the China Labor Studies Center at Beijing Normal University, told the Global Times.
"More government funding, fairer market rules and less intervention to enhance competitiveness of private Chinese companies would be helpful for the sector," Lin Xinqi, director of the Human Resources Department of Renmin University of China, told the Global Times.
The top 500 Chinese private firms hired about 5.61 million people, up 24.3 percent year-on-year, ACFIC said.
Hong Kong-listed car manufacturer BYD offered the highest number of new positions last year with a total of 162,803.
The number of private enterprises reached 7.5 million in China, accounting for half of the country's GDP.