China unveils new steps to aid employment amid trade tensions
[BEIJING] China unveiled new measures on Wednesday (Jul 9) to stabilise employment, including expanded social insurance subsidies, special loans, and targeted support for young people looking for jobs, as the country grapples with a prolonged trade war with the United States.
Local governments in some regions will raise unemployment insurance refund rates for small firms to a maximum 90 per cent from 60 per cent and for large firms to 50 per cent from 30 per cent, according to a notice issued by the State Council, China’s Cabinet.
Firms facing operational difficulties may apply to defer contributions to pension, unemployment, and work injury insurance, according to the Cabinet.
“Local governments and departments must take political responsibility for stabilising employment, track policy implementation, and introduce new measures promptly,” the Cabinet said.
Authorities will also roll out incremental policies according to changes in the employment situation, the Cabinet said.
Firms hiring unemployed youth aged 16–24 under contracts and paying full insurance for at least three months may receive a one-time subsidy of up to US$209 per person.
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Local governments should expand access to vocational education by allowing unemployed youth and migrant workers to enroll in technical schools, with relaxed age restrictions.
The jobless rate for 16- to 24-year-olds in China, excluding college students, dropped to an 11-month low in May but remained elevated at 14.9 per cent, data from the National Bureau of Statistics showed last month.
The unemployment rate for 25 to 29-year-olds, excluding students, also slid slightly to 7.0 per cent from 7.1 per cent a month earlier, the data showed.
Recent business surveys, however, suggest Chinese firms are under growing pressure to cut wages and jobs to stay afloat amid tepid demand at home and abroad. REUTERS
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