The Standing Committee on Social Policy, Education,
Culture and Science yesterday took up the draft law on labor prepared by the
Ministry of the Social Welfare and Labor. There was criticism that it says little
about reducing unemployment. DP members wanted the draft to be returned but the
MPRP group suggested the appointment of a working group with members from both
parties to recommend changes to the draft and the Committee accepted this
proposal by majority vote.

MP D.Oyunkhorol regretted the absence of Government support to the private
sector even though it generates jobs and 80% of the GDP. People older than 45 are
in more trouble as they are responsible for running families but cannot find
jobs. He suggested incentives for those who gave jobs to people past 45.

MP D.Odbayar wanted shorter vacations for younger workers.

The Minister said loans to the unemployed from the labor supporting fund have
had good results. The fund has an annual budget of MNT20 billion and issues
individual loans for a maximum MNT1million for 1.6 years to start a business.
There is no interest and no collateral. MP Z.Altai said this was a better
program than the one with MNT30 billion for the development of small and medium
enterprises.