China offers one-off subsidy to those hiring unemployed young people
Employers will receive up to 1,500 yuan for each new hire they make for the rest of the year
China is stepping up its efforts to stabilise employment and bolster household incomes, as labour market pressures persist amid sluggish economic growth, fierce domestic competition and the trade war with the United States.
The authorities will provide a one-off employment subsidy for companies and social organisations that hire unemployed people aged between 16 and 24, the General Office of the State Council said in a circular released on Wednesday.
Employers who sign formal contracts and pay full unemployment, work injury and pension insurance contributions for at least three months will receive up to 1,500 yuan (US$209) for each new hire they make.
The measure will remain in effect until the end of this year and be funded through China’s unemployment insurance reserves, the office added.
As part of the country’s job creation efforts, China’s top economic planner, the National Development and Reform Commission (NDRC), has allocated an additional 10 billion yuan in central government funding to expand its “work-for-relief” programme, aimed at generating jobs through labour-intensive public works.
The new round of funding will support 1,975 projects and deliver an estimated 4.59 billion yuan in direct wage payments to vulnerable groups.