China Issues Guidelines to Enhance Employment Amid Economic Slowdown

China's cabinet released guidelines prioritizing employment amid socio-economic development. The move comes as the country faces rising youth unemployment and pay cuts. Policies will coordinate fiscal, monetary, and industrial measures to stabilize job security and income. The central bank's recent stimulus package also supports these efforts.

China's cabinet on Wednesday issued new guidelines aimed at promoting high-quality and sufficient employment, pledging to prioritize job creation during socio-economic development and improve reasonable growth in pay, according to state media reports.

This comes at a time when some workers are facing steep pay cuts and the youth jobless rate has risen to its highest level since authorities revised their statistical methodology. The situation poses a challenge for policymakers striving to spur economic growth.

The guidelines, which align with the central bank's aggressive stimulus package unveiled on Tuesday, emphasize the coordination of fiscal, monetary, and industrial policies to enhance employment as a pivotal driver of development. State news agency Xinhua reported that China aims to prevent large-scale unemployment, improve job stability, and ensure reasonable income for workers. The country plans to allocate employment subsidies effectively and utilize unemployment insurance funds and various industrial funds to boost job creation.

So far, China has generated 8.26 million jobs in the first seven months, achieving 68.8% of its annual job creation target. The recent broader-than-expected measures mark policymakers' latest effort to restore confidence in the world's second-largest economy, which has been grappling with disappointing data and concerns of a prolonged structural slowdown. Investors and economists are now eagerly anticipating additional policy support on the fiscal front.

(With inputs from agencies.)