South China’s Guangdong Province has recently set forth a groundbreaking initiative to invigorate its labor market by incentivizing companies to hire young individuals aged between 16 to 24. The region’s local authorities announced on Wednesday that from January 1, 2023, through December 31, firms that onboard these young individuals would be rewarded with a subsidy of 1,000 yuan ($137).
Rationale Behind the Move
China, a rapidly developing nation, acknowledges the prominence of its burgeoning youth population. As per statistics from 2022, the country was home to an impressive 96 million individuals between the ages of 16 and 24, with over 65 million of them being students. This surge in student population brings forth pivotal questions regarding their integration into the labor force.
Fu Linghui, a spokesperson for the National Bureau of Statistics (NBS), emphasized that the prime objective of this age group is to absorb knowledge. He posed a contemplative question on the viability of including students who are job-hunting prior to their graduation in labor force surveys. According to him, with evolving social and economic developments, there’s a pressing need for refinement in how labor force statistics and related surveys are conducted.
Nationwide Concern over Youth Employment Data
This comes in the backdrop of China’s recent announcement to temporarily halt the publication of unemployment data for its youth. The decision was attributed to the need for enhancement in labor market statistics, taking into consideration the nation’s economic and social evolution, as mentioned by the NBS.
However, it’s noteworthy that the majority of university graduates, which is expected to surpass 11 million in 2023, secure employment even before they don their graduation hats. Citing data from the education department, Fu highlighted that there has been a consistent rise, year after year, in both the rate and number of job placements for these graduates.
He further elaborated on the nation’s active measures to bolster employment. “19 significant policy employment campaigns, primarily concentrated in state-owned enterprises, have been launched and have showcased commendable progress. To complement this, an array of subsidies focusing on social insurance and employment have been accorded to private-sector firms, resulting in the creation of approximately 670,000 jobs specifically for graduates,” Fu elaborated.
Expanding Employment Horizons
Guangdong’s endeavors are not solely restricted to the young population. The local government is making strides to diversify its employment base. There’s a pronounced push to encourage businesses to design roles catering to women with children, offering them the latitude of flexible working arrangements. Such companies aligning with this directive stand to gain subsidies from the government.
Furthermore, to empower the foundation of its economy, regions across China, including Guangdong, are doubling down on buttressing the growth of small to micro-enterprises. The local government in Guangdong is actively advocating for financial institutions to amplify their lending practices and streamline protocols, specifically for these burgeoning businesses that showcase potential.
The impact of such strategic initiatives is evident. As per the Guangdong Provincial Taxation Bureau of the State Administration of Taxation, the first half of 2023 saw Guangdong sanctioning a staggering 66.8 billion yuan in tax and fee reductions. Moreover, a substantial 43.3 billion yuan was allocated exclusively for tax refunds, segmented across two successive tranches of innovative tax-relief policies.
Highlighting the pivotal role of micro to medium-sized enterprises in fueling economic growth, market revitalization, and enhancing the quality of life, these entities emerged as the primary beneficiaries. They reaped additional tax and fee deductions, alongside tax refund delays, amounting to 45 billion yuan, a significant 67.37% of the total provision.
A Stable Employment Landscape with Room for Enhancement
Despite the robust strategies in place, the urban unemployment rate in China witnessed a slight uptick in July, settling at 5.3%, a 0.1% increment from the previous month. The NBS, however, maintains an optimistic stance, underscoring the overall stability of the employment scenario.
In closing thoughts, Fu reiterates the commitment of the NBS towards alleviating concerns surrounding graduate unemployment. With a slew of supportive measures gradually rolling out, he affirmed the bureau’s intent to delve deep, revamping and refining labor surveys to mirror China’s actual employment landscape more accurately.
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