Liputan6.com, Beijing – The Chinese government increases efforts to stabilize the labor market and strengthen the purchasing power of households, among global economic pressure, strict internal competition and the influence of the trade war with the United States.
In its latest policy, China will provide a subsidy up to 1,500 yuan (about $ 209) for companies and public organizations that gain unemployment aged 16 to 24 years. This incentive is valid before the end of the year and is funded from national unemployment insurance reserves.
The condition is that the company should sign an official contract and pay a full insurance premium (unemployment, an accident in work and a pension) for at least three months for each new employee drew from the age group.
Quote SCMPOn Thursday (10/7/2025), this step became part of the strategic efforts to overcome the surge of young unemployment, which, although it fell from the previous month, as of May 2025, has still amounted to 14.9 percent – much higher than last year.
In addition to direct subsidies, the National Development and Reform Commission (NDRC) also distributed an additional 10 billion yuan funds to expand the work program, which is a manual project of labor -based infrastructure.
This fund will support 1,975 projects on intensive work throughout the country and, according to estimates, will produce 4.59 billion yuan in the form of direct wages with vulnerable groups, including migrant workers who are returned to villages, households with a low level of income and excess rural labor.
In total, since the beginning of the year, the program received 29.5 billion yuan from the central government, which financed almost 6,000 projects and opened more than 700,000 local employment and produced more than 11 billion yuan in the form of wages.
Projects that priorities include the construction of village roads, an increase in agricultural production lines, irrigation channels and environmental infrastructure – all with human labor, not machines.
According to NDRC, only this time in this case more than 310,000 people will be employed, which has a direct impact on a decrease in unemployment and improving microeconomics.
