"We expect the impact on the job market to emerge gradually in the first half of next year if we don't respond in a timely and effective manner," said Yin Weimin, minister of human resources, according to the People's Daily.

By the end of September, the number of registered jobless in Chinese cities was 8.3 million -- or four percent -- the same as last year, the report said.

The actual scale of the problem is likely to be much larger, as the statistics do not include rural unemployment or workers laid off from state-owned companies.

In order to create more jobs, Yin said the government would provide more support for labour-intensive industries and small and medium-sized enterprises.

Creating enough employment is one of the main reasons China aims to increase economic growth, which has been in double digits for five consecutive years.

Yin also said a system that orders employers to place a certain sum of money in bank accounts controlled by the government, as an insurance to ensure salaries are paid on time and in full, will be broadened.

Last month a local government in southern China's Dongguan city had to pay 24 million yuan (3.51 million dollars) to more than 7,000 employees after two toy-making factories went bankrupt partly due to slumping exports.