"There are various means of raising the GDP, such as building infrastructure. But how many permanent jobs can railway and road projects create? Probably not many," said He Keng, a member of NPC's Standing Committee. Small businesses far outnumber colossal infrastructure projects and can create many more jobs, he said.

"I know the central government is very concerned with employment and has taken many measures. But if local governments focus only on GDP, without paying attention to employment, they will miss the mark," He added.

Cai Fang, another member of the NPC Standing Committee, also warned of the danger of a "jobless recovery". He said the government's US$586-billion stimulus package and its plan to bolster 10 major industries will not necessarily solve the employment crisis.

"Most of the industries that will get government support are not labor-intensive. The central government's incentives seem more attentive to big companies than small ones, which are the mainstay of employment," Cai said.

Local governments are expected to map out their own stimulus plans, complementing the central government's package. Cai called on local governments to focus on the service sector, particularly small firms.