context: Ministry of Human Resources and Social Security said employment remained stable in the first three quarters. But a State Council meeting the next day appears to indicate that Beijing is increasingly concerned about unemployment and its social consequences.
Li Keqiang announced proactive policies to address unemployment in a 2 November State Council executive meeting, including
- reducing enterprises’ unemployment insurance costs by providing a 50 percent rebate
- encouraging startups to promote employment by offering state financing guarantees, with loans and financial support focused on private companies and SMEs
- supporting more people to undertake job skills training
- expanding training subsidies from graduated students to all unemployed people aged 16-24
- allowing people who contribute to unemployment insurance for one year to qualify for skills improvement subsidies
- offering more training to the unemployed and using unemployment funds to pay medical insurance costs for those in need
Li also announced that State Council would continue the current policy cutting enterprises’ unemployment insurance contribution rate from 3 percent to 1 percent.