The Beijing municipal government plans to create some 100,000 jobs this year to tackle the problem of increasing unemployment, officials with the municipal Development Planning Commission announced yesterday at a press conference.

Unemployed residents who are officially registered as being out of work, will be given priority according to Commissioner Lu Yingchuan with the commission.

By March, the number of urban residents in Beijing who were out of work had reached 67,000.

"The service sector in Beijing will be enhanced to meet the present job pressure," Lu said.

The official attributed the reason for the high unemployment rate to the decline of industry growth and the adjustment of traditional industry sectors.

The industrial added value of Beijing's high-tech companies declined year-on-year by 10 per cent to 5 billion yuan (US$600 million) in the first quarter of this year. Industrial enterprises have also witnessed less development.

Some 60,000 laid-off workers were trained in the first quarter and 27,000 posts were created for them.

The re-employment rate increased by 32 per cent compared with the same period of last year. Some 45,000 registered urban unemployed residents have found new jobs this year.

Meanwhile, Beijing will continue to support low-income groups by subsidizing their grain and oil, according to Lu.

The official also vowed to adjust the amount of money provided to residents to ensure their living standards are safeguarded, especially those on low-incomes.

"Despite the lower price index, residents did not spend as much on the consumable market compared with the first quarter of last year," Lu said.

The capital's economy grew year-on-year by 7.3 per cent to 58.5 billion yuan (US$7 billion) in the first quarter of this year, according to Shen Baochang, the commission director.

It is predicted the growth will rise throughout the rest of this year with a better international economic environment.