A total of 4.13 million students graduated from higher education institutions this year, 750,000 more than last year, as the country enters its ninth year of expanding college enrolment.

Tian Chengping, minister of labour and social security, said on Thursday he estimates about 70 per cent of college graduates have been employed since graduation, according to the China Youth Daily.

He said the central government has set up an inter-ministerial joint team, including the Ministry of Education, to help address employment problems.

Meanwhile, the Labour and Social Security Ministry has established a mechanism to provide guidance and training for unemployed graduates, the minister said.

Only 22 per cent of China's new jobs last year were for college graduates, estimates a ministry study of 114 urban labour markets.

Tian said the country should create more jobs in the process of economic development and urged college graduates to work in grassroots units and undeveloped areas where they are most needed.

China's official registered unemployment rate stood at 4.1 per cent in the first nine months of 2006.

The demand for college graduates was down 22 per cent in 24 provinces and 15 major cities from last year, said a report issued by the Ministry of Personnel in March.

A survey showed 52.14 per cent of bachelor degree holders considered lack of experience as the biggest obstacle in finding work.

Colleges and universities should organize internships to prepare students for employment, said Lin Zeyan, a researcher with the Development Research Centre of the State Council at a forum this month.

The country needs to develop its service sector and promote small and medium-sized enterprises to create more jobs, said Mo Rong, deputy chief of the Labour Science Research Institute.