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New policies to incentivize employment

Stronger financial measures unveiled to encourage the hiring of job seekers

By CHENG SI | China Daily | Updated: 2025-07-11 07:34
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College graduates gather information at an employer's stand during a job fair held in Chongqing, on June 10, 2025. [Photo/VCG]

The State Council, China's Cabinet, unveiled a batch of new policies on Wednesday to further promote employment and keep the country steered toward its economic goals, with an aim to stabilize the job market and bolster high-quality economic development.

According to a notice about the policies released by the State Council, a series of stronger financial incentives for employers, such as reimbursing them a higher proportion of unemployment insurance payments, will be offered if they meet certain standards.

Employers having trouble keeping their businesses afloat can apply to defer their payments into the pension, unemployment and work-related injury insurance programs. No late fees will be charged during the deferment periods.

Small and medium-sized companies in the nation's pillar industries, including modern manufacturing and new energy, will receive social insurance subsidies upon hiring people from key groups such as college graduates, migrant workers and demobilized military members and signing standard labor contracts lasting at least one year. The company is responsible for applying for the subsidies and passing them on to employees promptly.

Companies and social organizations which are hiring young registered unemployed people between the ages of 16 and 24, and have signed standard labor contracts and also paid their portion of the social insurance for at least three months, will receive one-time subsidies from the government. The subsidy is up to 1,500 yuan ($209) per person and is for the employers. It is available until December.

County-level authorities are encouraged to start construction programs focusing on urban-rural integration and countryside development, thus providing jobs to migrant workers and people who have been laid off.

Skills training is highlighted in the notice. The government will give stronger financial support to companies to encourage them to organize skills training programs for their workers. Vocational colleges and schools are encouraged to relax their age restrictions for new students and to enroll young laid-off people or migrant workers who want to improve their professional competence.

Governments at all levels are required to optimize job services to both employers and job seekers. For college graduates who are having trouble landing jobs due to physical disabilities or financial problems, local human resources bureaus should recommend high-quality job openings or internships.

According to the notice, local authorities are required to offer unemployment insurance to registered workers who have paid into the insurance for at least a year before being laid off so they can meet their basic living needs. Employment aid or assistance should be available to people who go for long periods without finding work because they are older or have a disability.

Governments at all levels should also strengthen employment data collection and analysis to get a more comprehensive picture of the job market, strengthen supervision over the use of employment funds and prevent illegal practices such as cheating or submitting fraudulent applications to receive the funds.

Employment should be prioritized by the governments, who should analyze the impact the new policies will have on the job market before establishing further policies or programs and prepare for potential unemployment risks, the notice said.

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