As growth slows, China worries about job losses

Beijing

AS growth in China's sagging economy looks on the verge of falling below 7 per cent, officials worried about a spike in unemployment are pulling out all the stops to avoid mass layoffs.

State firms are encouraged to keep idle workers employed, subsidies and tax breaks are given to companies that do not fire their workers, and some businesses are even enticed into hiring despite the slackening economic growth.

The measures appear to be working for now, said a senior economist at the Development Research Centre, a think-tank affiliated to China's cabinet. "There is no big problem in employment. They (top leaders) are more worried ab…