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China Unveils More Steps to Support Jobs as Coronavirus Pandemic Jolts Economy

A vendor gives change of 10 Yuan notes to a customer at a market in Beijing, August 12, 2015. (Image: REUTERS)

A vendor gives change of 10 Yuan notes to a customer at a market in Beijing, August 12, 2015. (Image: REUTERS)

China's jobless rate rose to a record high of 6.2% in February, and any rapid rise in unemployment could pose a big challenge to China's stability-obsessed leaders.

  • Reuters Beijing
  • Last Updated: March 20, 2020, 8:01 PM IST
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China's cabinet has unveiled more steps to support jobs as the world's second-largest economy is expected to shrink for the first time in four decades because of the coronavirus outbreak.

China's jobless rate rose to a record high of 6.2% in February, and any rapid rise in unemployment could pose a big challenge to China's stability-obsessed leaders.

China will speed up targeted tax and fee cuts for firms, return more unemployment insurance premiums to firms that save jobs and subsidise small firms to hire college graduates with employment contracts longer than a year, the cabinet said in a statement.

The government will quicken the resumption of operations at key firms and projects, especially in manufacturing, construction, logistics and public services, the cabinet said.

For small and medium-sized firms with few or zero layoffs, the maximum return of unemployment insurance premiums could be raised to 100% of the amount paid in the previous year, the cabinet said.

China will also help migrant workers to find jobs and support flexible employment, allow more street vendors and markets, stalls and other business outlets, it added.

Premier Li Keqiang said China would spare no effort to help small, medium-sized and private businesses to survive, as the world's second-largest economy is jolted by the coronavirus crisis.

He said fiscal and monetary policies that have been rolled out should aimed more towards small companies, Li said, according to a statement posted on the cabinet's website.

Small and private firms in China account for 80% of urban employment.

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Data Source: Ministry of Health and Family Welfare, India
Updated: April 10 (08:00 AM)
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