China’s ministry of human resources has introduced a new subsidy programme to increase employment opportunities for young people and graduates who are facing long-term unemployment.
According to a notice published on July 3, companies that hire individuals aged 16-24 or graduates who have been registered as unemployed for two years will receive a subsidy of 1,500 yuan or $207 per person.
In the past, the subsidy programme in China was used only to offer financial incentives to the companies that recruited fresh university graduates. However, due to the high unemployment rate among individuals aged 16-24 which was 20.8 per cent in May, the government decided to expand the eligibility criteria for the subsidy.
This financial aid serves as a measure to curb the unemployment challenges in the country. Many young people and graduates are finding it even harder to find work due to the ongoing impact of the Covid-19 pandemic.
By offering financial support to companies that hire young individuals and long-term unemployed graduates, the government hopes to stimulate job creation and reduce the unemployment rate. The subsidy of 1,500 yuan per person serves as an incentive for businesses to actively recruit and provide opportunities for those in need of employment.
This move aligns with the government’s broader efforts to support economic recovery and ensure a sustainable future for its workforce. By targeting specific age groups and addressing the challenges they face in the job market, the subsidy programme aims to foster economic growth, enhance social stability, and empower young individuals by providing them with valuable work experience and income.
With the implementation of this programme, it is hoped that there will be more jobs in the project, which will help reduce youth unemployment and stimulate the economy in China.
