FX.co ★ China Boosts Job Support

Earlier this week, China unveiled new strategies aimed at stabilizing employment amid ongoing pressures from a prolonged trade conflict with the United States and persistent youth unemployment issues. In June, the unemployment rate for individuals aged 16 to 24, excluding those in college, was notably high at 14.9%, showing a slight decrease from May's 15.8%. To alleviate these labor market challenges, the State Council has announced that local governments will increase unemployment insurance refund rates, raising them to as much as 90% for small businesses, up from 60%, and to 50% for larger businesses, up from 30%. Additionally, companies experiencing operational challenges can apply for deferred payments on contributions to pension, unemployment, and work injury insurance. The authorities are also set to extend targeted assistance to young job seekers and will introduce further measures as needed. The cabinet emphasized the importance of political accountability for employment stabilization, instructing local governments and departments to monitor policy execution and promptly implement new initiatives as required.