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the state council has admitted that the outbreak of sars has worsened china's already 'grave' employment situation. in a circular released wednesday, the government said: 'uncertainties for economic development caused by the outbreak of sars (severe acute respiratory syndrome) has brought about new difficulties and had negative effects on employment. it is challenging the realization of this year's employment targets.' the state council said local governments must take immediate action and try to keep the jobless rate in their respective areas below 4.5 per cent of the working population this year. 'governments at various levels should think of employment promotion as an essential part of keeping society stable,' the state council said. the latest official statistics indicate that 7.75 million people were registered unemployed in urban areas as of the end of march, 750,000 more than that at the same time last year. the registered unemployment rate was 4.1 per cent. the number of unemployed is expected to continue to increase. the state council urged labour and social security departments to include the development of the labour market in their overall local economic and social development plans, with the aim of creating jobs. | 
