China unveiled new measures on Wednesday 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% from 60% and for large firms to 50% from 30%, 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 16โ24 under contracts and paying full insurance for at least three months may receive a one-time subsidy of up to 1,500 yuan ($209) per person, the cabinet said.
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 cabinet said.
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%, 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% from 7.1% 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.
($1 = 7.1800 Chinese yuan renminbi)
(Reporting by Ethan Wang, Yukun Zhang and Kevin Yao; Editing by Andrew Heavens and Kim Coghill)
