Ahead of the Party Congress, Winning Public Support from Migrant Workers and Others
"The Fourth Quarter Has the Largest Economic Share... Increase Investment and Issue Bonds in Advance"
[Asia Economy Beijing=Special Correspondent Kim Hyunjung] Li Keqiang, Premier of the State Council of China, emphasized the fourth-quarter economic stabilization measures, including the expansion of unemployment benefit recipients, according to the state-run Xinhua News Agency on the 29th.
According to the report, Premier Li stated at the State Council meeting held the previous day, "The number of people facing difficulties has recently increased," and emphasized, "We must thoroughly protect people's livelihoods." He added, "In the fourth quarter, the scope of basic insurance coverage will be gradually expanded, and marginalized households in blind spots should be included as recipients of basic insurance subsidies, ensuring firm and equitable implementation across regions."
He continued, "The central government’s finances should cover 70% of new local expenditures," and explained, "Policies to expand unemployment (employment) guarantees will be implemented and improved so that returning migrant workers can also receive subsidies or support." Furthermore, he added, "Unemployed individuals who have been out of work for more than half a year will be included as recipients of one-time employment subsidies," and emphasized, "We must cooperate to strengthen production activities and promote sustainable economic and social development."
This is interpreted as a response to the rapid deterioration of employment indicators due to the recent zero-COVID prevention measures and slowing economic growth in China. The youth unemployment rate for ages 16 to 24, announced last month, was 19.9%, the highest ever recorded. This means that one in five young people in this age group is unemployed.
On the same day, Premier Li said, "It is important to establish the framework of the economy in terms of employment and people's livelihoods," and added, "The fourth-quarter economy accounts for the largest proportion of the year, and many policies will be more effective during this period."
He also emphasized the importance of expanding investment and promoting consumption to revitalize the economy. He stated, "In response to weak demand, we must increase investment and find ways to stimulate consumption to stabilize the economy," and stressed, "Policy development financing recently announced should be reasonably allocated to regional projects, and infrastructure project construction should be accelerated to physically accomplish more work in the fourth quarter." Additionally, he ordered the early issuance of special bonds scheduled for next year, saying, "We must utilize policies such as special re-lending and fiscal discounts to accelerate equipment innovation in manufacturing, services, social services, and other sectors, and form real demand as soon as possible."
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