China looks to plug job market damage from tech crackdown with more support for internet economy

Name: Millions of China’s fresh graduates enter bleak job market
Uploaded: 2022-09-09T11:00:24.000Z
Duration: 2 min 30 s
Description: Millions of China’s fresh graduates enter bleak job market

The State Council has promised to scale up support for start-ups and ordered banks to extend special loans to companies in the platform economy

China’s official surveyed jobless rate for youth hit a new high of 19.9 per cent in July, above that of the United States and many European countries

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Beijing is determined to stabilise employment ahead of the 20th party congress next month. Photo: AFP

Orange Wang

Published: 7:00pm, 9 Sep 2022

China is rolling out more support for internet giants to help stabilise the economy and create jobs, just months after easing a crackdown on its tech sector that wiped hundreds of billions of dollars in value off some of its biggest companies.

Economists are warning about the risk of long-term “scarring” from cyclical unemployment if Beijing does not do enough to improve conditions in China’s labour market.

China’s zero-Covid policy has delivered a hammer blow to the economy, but Beijing’s regulatory crackdown on its internet giants, which form the backbone of the platform economy, led to lay-offs and is widely considered to a prime reason for mounting pressure on employment.

The State Council, China’s cabinet, said on Thursday it would scale up support for start-ups to help create jobs, which are the “foundation” of people’s well-being, according to a memo issued by the official Xinhua News Agency.

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Millions of China’s fresh graduates enter bleak job market

The government also ordered financial institutions to extend special loans to key platform companies, and promised subsidies for workers struggling in the gig economy and college students yet to find work two years after graduation.

“The current employment situation is generally stable, but there are concerns as well,” said Premier Li Keqiang, who chaired the State Council’s Wednesday meeting.

The State Council issued similar messages of support for the platform economy when unveiling a 19-point policy package two weeks ago, and after a July meeting of the Politburo, China’s top decision-making body.