Enhancing Employment Initiatives Unveiled by Beijing
The Chinese government has announced a series of comprehensive measures to bolster employment, particularly focusing on supporting college graduates and jobseekers, as the country navigates ongoing trade conflicts.
Key initiatives include the introduction of one-time job expansion subsidies for organisations hiring 2025 graduates, the unemployed within two years after graduation, or registered unemployed youth aged 16 to 24. This subsidy program, valid until December 31, 2025, extends to social organisations, not just enterprises, for the first time. Companies hiring unemployed youth for at least three months and paying the full insurance premium can receive a one-time subsidy of up to 1,500 yuan (179 euros) per person.
To encourage private enterprises and small-to-medium-sized businesses, fiscal support and targeted incentives such as tax incentives, guaranteed loans, and employment subsidies have been introduced. The extension of unemployment insurance relief policies aims to help companies retain employees and support workers in upgrading skills.
The government is also promoting employment in emerging industries and key sectors, particularly high-tech fields like industrial automation, digital technologies, artificial intelligence, and healthcare. Recruitment activity in these industries has significantly increased, with companies like Tencent launching large-scale hiring plans.
In an effort to boost employment in grassroots and rural areas, programs are being implemented to help graduates secure positions in less developed regions. Local governments have introduced tailored employment measures, such as creating thousands of new jobs and launching community and rural vitalization recruitment initiatives in provinces like Shanxi, Inner Mongolia, Henan, and Sichuan.
Large-scale targeted job fairs are being organised, backed by the Ministry of Finance and the Ministry of Education, offering over 1.1 million job positions with participation from provincial and national employers across diverse sectors.
Local governments and departments are expected to take political responsibility for employment stabilization, while they will also expand access to vocational training for unemployed youth and migrant workers. In a significant move, the cabinet has announced that unemployed youth and migrant workers can enroll in technical schools with relaxed age restrictions for vocational training.
These coordinated efforts reflect China's strategic priority to maintain job stability and support high-quality employment growth despite external challenges such as the trade conflict with the US. The subsidy for hiring unemployed youth aged 16 to 24 is not affected by the size of the company, the industry it operates in, or the region where the company is located. Companies facing operational difficulties can apply for deferral of contributions to pension, unemployment, and work injury insurance. For small businesses, the reimbursement rate for unemployment insurance subsidies can be raised from 60% to up to 90%, while for large businesses, it can be raised from 30% to 50%. Unemployment insurance subsidies for regional authorities can now be higher.
The Chinese government's employment policy extends to finance with the introduction of one-time job expansion subsidies, valid until December 2025, for organizations hiring unemployed youth or college graduates. Additionally, in the realm of education-and-self-development, unemployed youth and migrant workers are now allowed to enroll in technical schools with relaxed age restrictions, a move aimed at promoting business growth and self-improvement.
