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The latest survey on the job situation in the city reveals local residents are optimistic about their prospects in the year ahead, despite a current shortage of job vacancies.

The survey, conducted by Guangzhou Statistics Bureau, interviewed 10,000 households on the city's employment situation.

Of those interviewed, 43 per cent believe the employment situation will improve and 46.3 per cent do not think the situation will change significantly in the coming year, while the remaining 10.7 per cent believe things will get worse.

Local statistical analysts Zheng Jijun and Huang Yanling said a growing number of citizens are less optimistic about the employment situation this year than previously.

And they attributed their pessimism to the negative impact of the SARS epidemic and the resulting pressure on the large number of university graduates this year.

Around 80,000 final-year and short-term college students in Guangdong Province, who will graduate late this month, have not yet found jobs, partly as a result of SARS, and a majority of them are in Guangzhou, official sources said.

According to the survey, those who have jobs and college students are more optimistic about the employment situation next year than unemployed people and those on lower incomes.

And 30.7 per cent of those interviewed said that they would like to start self-employed businesses, while 27.1 per cent have a wait-and-see attitude.

The analysts said age is the most important factor when people decide whether to set up their own businesses or not, while education background is less important.

Of those who have jobs, 28.4 per cent are looking for opportunities to start their own business.

Of these, 36.3 per cent are below the age of 30 and 23.3 per cent over 45 have such an intention.

They said the authorities' preferential policies, including tax incentives and the city's good environment for self-employment, encourage local residents to set up their own businesses.

Those who want to follow this employment path are most keen to see reductions or even total exemption of taxes and fees, credit priority and preferential treatment, simplified procedures and technological and information support.

And for those who have been laid off, 84.2 per cent per cent would like to be re-employed as soon as possible.

Those who are either poorly educated or are older worry the most about new job opportunities and most of them rely on the government for re-employment opportunities.

According to the survey, around 90 per cent of interviewees speak highly of Guangzhou's community employment service for job opportunities, as well as of the government re-employment and vacancy programmes.

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