China launches a support package of nearly 200 million/year for students who go to rural areas to work
With the goal of attracting the majority of recent university graduates to return to their hometown to work, China’s Yunnan province has just announced a subsidy package worth thousands of dollars. The move comes at a time when the unemployment rate of young people and students who have just graduated from this country is at a record high.
Previously, the Chinese government also asked local officials to take the lead in promoting economic growth and employment for workers to achieve the goal of maintaining the unemployment rate at 5.5% for the year. now.
The Yunnan provincial government has announced that it will subsidize 50,000 yuan ($7,500) a year for anyone who returns to work in rural areas. The attached condition is that they have to work in the fields of education, medicine, agriculture or poverty alleviation. According to SCMP, this is not a small amount, when most people in rural areas in Yunnan province earn less than 10,000 yuan a month.
The specific budget for this initiative is not clear, nor is it clear how many jobs will be filled, but the policy is said to be quite suitable for Beijing for the time being.
China aims to maintain unemployment at 5.5% this year
In the context of the economic downturn and businesses being heavily affected by the blockade measures, the urban unemployment rate rose to 6.1% in April, the lowest level in 2 years. . This is also the second-highest rate since 2018, when mainland officials began releasing monthly data.
In addition, the unemployment rate between the ages of 16 and 24 also reached a record high of 18.2% in April. This situation is expected to get worse and worse, especially when the labor market is about to welcome 10. .76 million college graduates.
Last month, after Premier Li Keqiang warned of bleak job prospects, Chinese officials also introduced a subsidy policy for companies that hire fresh graduates, and partially subsidized fees. insurance to prevent these businesses from laying off employees.
In addition to Yunnan, Liaoning province is also offering free 6-month vocational training classes for students and unemployed workers within the past 3 years. Ha Nam province is also promoting the application of multiple digital platforms to search for jobs and simplify the recruitment process. The 3rd party recruitment support is also rewarded 300 yuan for each position they bring. Some universities even offer grants to students who want to start a business.
China needs to restart its crippled economy to make room for the labor market
However, many experts say that as long as strict restrictions related to the pandemic remain in place across the country, the unemployment rate will hardly improve.
“Government policies are being implemented in an effort to boost the economy. However, if fundamentals do not improve, it will be difficult for the job market to recover,” said Peng Peng, executive chairman of the Guangdong Reform Association.
A recent report by Moody’s Analytics also indicated that a slowdown in economic growth in 2022 will exacerbate unemployment across the mainland. This rate is expected to reach 4.2%, similar to the figure in 2020, when the COVID-19 pandemic began to break out.
“China needs to restart its crippled economy to make room for the labor market. Along with the support packages, fiscal and monetary policy, the economy must also turn around for businesses to implement their recruitment programs,” said Tommy Wu, economist at Oxford Economics.
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