(Economic Watch) Graduation season is coming, and China has been recruited for stable employment one after another

Beijing, 4 Apr (ZXS) -- With the graduation season of colleges and universities approaching, China's stable employment has entered a critical period. Following the concern about the employment of college graduates a week ago, the executive meeting of China's State Council held on the 15th studied the optimization and adjustment of policies and measures to stabilize employment, releasing a strong signal of protecting people's livelihood.

Since the beginning of this year, China's economic operation has stabilized and rebounded, and the national urban survey unemployment rate from January to February averaged 1.2%. Although the employment situation is generally stable, the challenges cannot be ignored. This year, the number of graduates from ordinary colleges and universities in China has reached a new high, and it is expected to reach 5.6 million. From the second quarter, fresh graduates ushered in a peak in employment, and according to historical experience, the unemployment rate may increase seasonally.

Facing the pressure of stable employment, the executive meeting of the State Council proposed to further strengthen policy guidance, while maintaining the overall stability of stable employment policies, targeted optimization and adjustment of phased policies and increase support for weak links to ensure the overall stability of employment.

Wen Bin, chief economist of China Minsheng Bank, noted that this meeting emphasized "highlighting the stability of stock, expanding increment, and maintaining the key points", which has both total requirements and structural goals: stabilizing stock, that is, ensuring the stability of existing jobs; Expansion, that is, mobilizing the enthusiasm of employers and creating new jobs; Ensuring key points, that is, providing employment support for key groups such as college graduates and migrant workers, and providing categorical assistance to the unemployed and other persons with employment difficulties.

To implement the above requirements and goals, it is still necessary to return to the post of aid to enterprises. According to Chi Fulin, president of the China (Hainan) Reform and Development Research Institute, stable employment focuses on stabilizing enterprises, and 1 million market entities are the power source of economic development and the pillar of employment. In the next step, it is necessary to comprehensively clean up policies that are not conducive to the development of the private economy, increase policy support for market entities in the service sector, consolidate and enhance the warming trend, and significantly improve the breadth and effectiveness of fiscal and taxation policies to benefit small and micro enterprises.

Relevant policy benefits have been released one after another. China has continued and optimized the implementation of some phased preferential tax policies this year, and the "tax reduction list" of more than 4800 billion yuan has recently been released.

Increase the pre-tax super-deduction ratio for R&D expenses of enterprises in eligible industries, and implement it as an institutional arrangement for a long time; Pragmatic measures such as extending the reduction of unemployment and work-related injury insurance premiums until the end of 2024 are on the list. The analysis believes that the relevant measures ensure the continuity and stability of the tax policy, and will strongly support the employment of business entities and residents.

The meeting also proposed that efforts should be made to solve structural employment contradictions, adopt pragmatic and effective measures to stabilize the employment scale of manufacturing and foreign trade enterprises, highlight employment orientation, optimize the professional settings of colleges and universities, and improve the quality of vocational education and skill training in response to market demand.

Wen Bin analyzed that there are short-term measures, that is, expanding the scale of employment in the current period by stabilizing labor-intensive industries such as manufacturing and foreign trade enterprises; There is also a long-term plan, that is, to match education and employment by optimizing the education model.

It is particularly noteworthy that China's foreign trade entities directly and indirectly drive the employment of more than 1 million people, and the manufacturing industry is the main force in foreign trade enterprises. Affected by factors such as pressure on world economic growth and insufficient market demand, both industries are currently facing some challenges and practical problems, which require policy support.

In this context, the meeting made it clear that it is necessary to strengthen the support of macro policies and industrial policies, promote more employment by expanding effective demand, boosting market confidence, and stabilizing enterprise operations, so as to promote employment growth and economic development.

Wen Bin believes that the current Chinese economy is in a moderate recovery stage, but from the data of prices, M1 (narrow currency) and other data, the endogenous growth momentum of the economy needs to be enhanced, and policy support needs to be strengthened to achieve stable employment through stable growth.

In the context of a series of tax and fee cuts and job stabilization subsidies launched last year around stabilizing employment, Zhang Yiping, co-chief analyst of China Merchants Securities, also pointed out that China's completion of employment targets this year will return to economic expansion and employment demand to recover. It can be expected that entering the critical period of stabilizing employment in the second quarter, the policy environment will be further optimized. (End)