[Employment in China: Challenges & Countermeasures] EP5: Securing the Fundamentals of Employment

The Chinese government is endeavoring to knit a “safety net” for those who have difficulty finding a job.

In response to the COVID-19 pandemic, the Chinese government has launched a series of measures to secure employment, such as increasing guaranteed loans for startups, expanding the coverage of preferential policies, giving support priority to the groups hit hardest by the epidemic and exempting the counter-guarantee request for quality startups. Some incubation bases for startups developed by the government are open for free to college graduates and immigrant workers to start businesses. The government also offers more public service jobs to poverty-stricken people, ensuring that they can work near their homes and meet their basic needs.

At present, more than 200 million people are covered by unemployment insurance in China. During the outbreak of the epidemic, the government has strengthened the effort to stabilize employment and minimize layoffs. So far, a total of 3.2 million companies have received 42.3 billion yuan (US$5.91 billion) in refunded unemployment insurance premiums, benefiting 85.13 million people.

This year’s government work report pointed out that the government will strengthen the employment-first policy with comprehensive measures. It will create synergy to stabilize employment through coordinated use of fiscal, monetary, and investment policies. The government will strive to keep existing jobs secure, work actively to create new ones, and help unemployed people find work. All local governments need to overhaul or rescind excessive restrictions on employment, and adopt all possible measures to bolster employment.