China has announced the extension of key unemployment insurance policies to bolster economic resilience and workforce development through 2025. The initiative, outlined in a joint circular by the Ministry of Human Resources and Social Security, the Ministry of Finance, and the State Taxation Administration, targets both businesses and workers amid evolving economic challenges.
Support for Employers and Employees
Firms that avoid layoffs or minimize workforce reductions will continue receiving refunds equivalent to a percentage of prior-year unemployment insurance premiums. This incentive aims to encourage companies to prioritize job retention while adapting to market shifts.
Skills Development Focus
The extended policies expand subsidies for skills-upgrading programs, lowering eligibility thresholds to help workers stay competitive. Authorities emphasized support for vulnerable groups, including continued access to unemployment benefits, medical insurance, and specialized assistance for older workers facing job displacement.
Employment Targets and Outcomes
China aims to keep the urban unemployment rate near 5.5% in 2025 while creating over 12 million urban jobs this year. Preliminary data shows progress, with the average urban unemployment rate at 5.3% in Q1 2025—a figure closely watched by investors and analysts assessing Asia's largest economy.
