The Chinese mainland government announced a new circular this week extending key unemployment insurance measures through 2025. Jointly issued by the Ministry of Human Resources and Social Security, the Ministry of Finance, and the State Taxation Administration, the plan aims to help businesses retain staff and empower workers with skill-building support.
Under the refreshed policy, companies that maintain employment levels or limit layoffs will continue to receive partial refunds on unemployment insurance premiums paid in the previous year. This refund can free up cash for growth and innovation, especially for small and medium-sized enterprises navigating economic uncertainty.
On the worker side, the policy relaxes eligibility rules for skills-upgrading subsidies and broadens coverage to more professions. From digital marketing to advanced manufacturing, employees can access training allowances that help them pivot or level up in fast-evolving industries.
Essential social safety nets also remain in place. Eligible individuals can continue to claim basic living allowances, receive unemployment benefits, and keep basic medical insurance. Support for older unemployed residents is an integral part of the plan, ensuring no one is left behind.
Data shows the Chinese mainland aims to maintain an urban unemployment rate of around 5.5% by 2025 while generating over 12 million new urban jobs this year. In the first quarter of 2025, the average surveyed urban unemployment rate stood at 5.3%, signaling that these measures could help stabilize the labor market amid global headwinds.
For young entrepreneurs, digital nomads, and global citizens watching from afar, these steps offer a window into how policy can drive both stability and opportunity. As businesses adapt and workers refine their skills, the Chinese mainland's approach highlights a dual focus on resilience and growth.
Stay tuned to see how these extended measures shape the job market in the months ahead—and what lessons they might hold for other economies tackling similar challenges.
Reference(s):
China prolongs policies to keep job market stable, enhance skills
cgtn.com
