Despite the economic boom, China is facing a major challenge in meeting the goal of creating nine million new jobs this year, a senior official has said.

"Based on the current employment situation, the country faces huge job pressure and a grim market in the coming few years," Minister of Labour and Social Security Tian Chengping said.

The ongoing reform of State-owned enterprises will create a huge number of laid-off workers, who will find it difficult to find new jobs, Tian told reporters.

Moreover, about five million college graduates, the largest number in history, will enter the job market this year, in addition to surplus rural labourers swarming into cities for work, he said.

Figures from education departments showed that around 30 per cent graduates could not find jobs upon graduation, he said.

The minister estimated that there will be 24 million job seekers this year, but only half will find a job. Despite this, the country hopes to keep the registered urban unemployment rate below 4.6 per cent, Premier Wen Jiabao said in his government's work report on March 5.

To alleviate the strain, the government will strengthen training and improve public services for job seekers. At the same time, Tian dismissed concerns that some booming coastal regions such as Guangdong and Fujian provinces are facing a labour shortage, especially skilled workers.

"It mainly reflects a structural problem. As these prosperous regions upgrade their industrial structure, they need more skilled workers," he said. However, migrant workers from rural areas usually don't meet the requirements.

• Find the job you want! Click here!