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Chinese Premier Wen Jiabao has urged companies to "do everything possible" to maintain their workforce amid the global downturn, state media said on Tuesday. During a two-day visit to the south-western city of Chongqing from Sunday, Wen expressed great concerns about the fallout from the global economic crisis, the China Daily said.
"Companies must not lay off workers easily," Wen said to the city's carmaker Changan Group, which may cut more staff over the next four months after sales declined in November.
"The automobile industry has a long industrial chain and it is an industry the government should strongly support," he said. Rising unemployment has fed fears of unrest as forecasts for China's growth next year fall below 8 percent. Urban unemployment has risen to about 9.4 percent, double the official figure, the Chinese Academy of Social Science said in a report last week.

Copyright Reuters, 2008

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