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China's government reacts to return of rural migrants (3) |
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13:26, November 19, 2008 |
PROACTIVE RESPONSE
One new policy effective as of Jan. 1 in Hubei is to use unemployment insurance to subsidize companies that offer vocational training for in-house re-employment and reward enterprises that have paid insurance premiums for more than two consecutive years without layoffs.
Under current regulations, unemployment insurance can only go to the jobless as living subsistence or subsidies for technical training.
The central government has drawn up plans to create jobs by supporting labor-intensive industries, urging banks to lend to small and medium-sized companies and encouraging self-employment and entrepreneurship.
From next year, Hubei Provincial Government will evaluate officials on whether they meet targets for new self-employment posts and businesses.
In the next five years, the province hopes to help 50,000 people start their own businesses and create 200,000 new jobs every year.
To that end, the small loan ceiling for individuals has been more than doubled from 20,000 yuan to 50,000 yuan, while that for labor-intensive companies is up from 2 million to 3 million yuan. Commercial banks will receive government rewards, with the amount designated at 1 percent of their total small loans.
In Guangdong, where factory closures put many rural migrants out of work, measures were enacted to facilitate rural labor transfers within the province.
All companies that had signed employment contracts with rural workers and paid social security insurance for more than a year would receive government subsidies. Firms making outstanding contributions to local rural labor employment would be rewarded by the provincial government.
Firms with a significant rural labor employment ratio would receive tax breaks. Although very few rural workers have returned to Chongqing, another major exporter of labor, the municipality has pledged preferential land, tax and loan policies if they want to start their own businesses.
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