BEIJING, Jan 25 (Reuters) - China created 12.7 million new jobs in urban

areas in 2012, the Ministry of Human Resources and Social Security, said on

Friday.

The increase from 2011's 12.2 million new urban jobs left China's urban

jobless rate steady at 4.1 percent at the end of 2012 - the 10th straight

quarter officials say it has been at that level.

The urban jobless rate is China's only official unemployment indicator, but

analysts say it grossly underestimates the true level of unemployment because it

excludes about 250 million migrant workers from its surveys.

The National Bureau of Statistics said last week that China had created 11.9

million jobs in 2012 in urban areas. The differing numbers highlight the

discrepancies in China's employment data which feed analysts' doubts.

Economists at Nomura in Hong Kong said other data signalled that China's

labour market had tightened in the fourth quarter of 2012, with an index of the

ratio of urban labour demand to supply rising to 1.08 from 1.05 in Q3 - its

highest since the index was first published in 2002.

A group of about 20 migrant workers from Dalian in China's northeastern

Liaoning province were demonstrating outside the labour ministry on Friday as

the jobless data was presented at a news conference, demanding the ministry help

them collect unpaid wages after completing work on a construction project.

China's migrant workers are the backbone of the country's labour force,

working mainly in low paid jobs on construction sites and in factories.

Beijing has mandated that minimum wages rise at least 13 percent a year

during the course of the current five-year plan that runs to 2015.

The same plan mandates annual increases in urban and rural household incomes

of more than 7 percent, which would result in them doubling over 10 years.

The labour ministry said on Friday that 25 of China's 32 provinces raised

minimum wages at an average of 20.2 percent in 2012.

In 2011, 24 provinces increased minimum wages by an average of 22 percent.

In 2010, 30 provinces delivered increases of an average of 22.8 percent.

The most recent data available shows minimum wages in 2011 ranged from 1,500

yuan ($241) per month in Shenzhen, the highest, to 870 yuan in Chongqing, the

lowest.

The disparity of incomes has become a politically sensitive issue in China

over the last decade as the gap between rich and poor has widened into a chasm.

About 13 percent of China's 1.3 billion people still live on less than $1.25

per day according to the United Nations Development Programme and average urban

disposable income is just 21,810 yuan ($3,500) a year.

Meanwhile China has 2.7 million U.S. dollar millionaires and 251

billionaires, according to the Hurun Report.

Registered urban jobless rate in China:

Dec12 Sept12 Jun12 Mar12 Dec11 Sep11 Jun11 Mar11 Dec10 Sep10 Jun10

4.1 4.1 4.1 4.1 4.1 4.1 4.1 4.1 4.1 4.1 4.2

(Reporting by Aileen Wang and Nick Edwards; Editing by Jacqueline Wong)

Keywords: CHINA ECONOMY/JOB

(lan.wang1@thomsonreuters.com)(86 10 6627 1032)(Reuters Messaging: lan.wang1.thomsonreuters.com@reuters.net)

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