China has decided to extend unemployment insurance support through the end of 2025, aiming to stabilize employment nationwide. Authorities announced the decision in a joint circular released on Tuesday. The Ministry of Human Resources and Social Security, Ministry of Finance, and State Taxation Administration issued the detailed measures.
Officials explained that companies can continue receiving refunds on unemployment insurance premiums. This applies only to businesses that avoid layoffs or limit job cuts significantly. The refund will be calculated from premiums paid in the previous year. This extension aims to reward firms that actively protect their workforce.
In addition to financial support, the unemployment insurance support package expands training assistance. Workers will now find it easier to qualify for skills-upgrading subsidies. Authorities have lowered eligibility requirements to make the subsidies more accessible. They have also widened the range of programs included in the coverage.
Moreover, the new measures continue to guarantee essential living benefits. These include unemployment allowances, basic medical insurance, and support for older unemployed people. Officials emphasized that these protections remain crucial during uncertain economic conditions.
China has set ambitious labor goals for the year. The country hopes to create more than 12 million urban jobs by the end of 2025. Authorities also aim to keep the surveyed urban unemployment rate near 5.5 percent. The average unemployment rate stood at 5.3 percent in the first quarter of 2025.
The extended unemployment insurance support reflects China’s ongoing commitment to labor market stability. With inflationary pressure and global uncertainty, Beijing seeks to prevent mass layoffs and encourage workforce development. Leaders believe strong unemployment insurance support is vital for long-term economic resilience and public welfare.
By backing companies and uplifting workers, China continues building a sustainable and inclusive labor market.
