China has announced the extension of key unemployment insurance policies through 2025, aiming to help companies retain employees and assist workers in enhancing their skills. The decision, unveiled on Tuesday, is part of a broader effort to stabilize the job market amid economic challenges.
The announcement came through a circular jointly issued by the Ministry of Human Resources and Social Security, the Ministry of Finance, and the State Taxation Administration. The policies are designed to support enterprises in maintaining stable employment levels.
According to the extended policy, companies that avoid layoffs or minimize them will continue to receive refunds of a certain percentage of the unemployment insurance premiums they paid in the previous year. This incentivizes businesses to keep their staff employed during uncertain times.
To further empower workers, the policy relaxes eligibility requirements and expands coverage for skills-upgrading subsidies. This means more employees can access training programs to improve their skills, making them more competitive in the job market.
The measures also ensure the continued provision of basic living allowances, including unemployment benefits, basic medical insurance coverage, and support for older unemployed individuals. These safety nets are crucial for those seeking new employment opportunities.
China has set ambitious targets for its labor market. By 2025, the government aims to maintain the surveyed urban unemployment rate at around 5.5%. Additionally, it plans to create over 12 million new urban jobs this year. In the first quarter of 2023, the average surveyed urban unemployment rate stood at 5.3%.
This move reflects China’s commitment to supporting its workforce and promoting economic stability. By extending these policies, the government is working to ensure that both employers and employees can navigate the challenges of the evolving global economy.
