Background:

1.       A good number of long-term trends are casting a great impact on the supply and demand of labor: aging of the population; structural employment contradiction; the application of artificial intelligence technology and so on.

2.       Plan for Employment Promotion has been an important supplementary document for China’s Five-Year Plans since the 12th Five-Year Plan.  

Current Status and Facts:

1.       On August 23, 2021, the State Council issued its 14th Five-Year Plan for Employment Promotion (hereinafter referred to as “the Plan”).  On August 30, 2021, however, the State Council Information Office held a policy briefing press conference with the specific purpose of further interpreting the Plan.

2.       In general, the Plan:

      a)         Focuses on alleviating structural employment contradictions 

      b)         Focuses on issues in key areas of public concern

      c)         Is a systematic guideline for promoting high-quality employment development during the “14th Five-Year Plan” period.

3.       The Plan is consist of three parts:

      a)         Outlines guiding principles and main objectives

      b)         Sets critical goals, such as enhancing modern agricultural zones and pilot areas to improve employment for rural areas.

      c)         Specifies the supporting measures (such as technical training subsidy for labor force).

4.       Overall objective is to increase minimum 55 million people for employment by 2025.

Possible Impact and Suggestions:

1.       A possible reduction on personnel cost for companies with the policy and subsidy support on employment promotion.

2.       Enterprises in the manufacturing business may expect less difficulties in finding technical and regular workers.

3.       MNCs and foreign investors with advanced agricultural solution and technology may find more business opportunity in rural areas.

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