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Press Release for Media Briefing of the Shanghai Municipal Government on June 11, 2020

June 12, 2020

The Information Office of Shanghai Municipality held a press conference on the morning of June 11. Zhang Lan, deputy director of the Shanghai Human Resources and Social Security Bureau, introduced the city’s latest “Implementation Opinions on Further Stabilizing Employment and Promoting Development.” Ni Minjing, deputy director of the Shanghai Education Commission, Chen Dong, chief economist of the Shanghai State-owned Assets Supervision and Administration Commission, and Zhou Guoliang, director of the Shanghai Employment Promotion Center, also attended the press conference and answered questions from reporters.

Employment is the foundation of people’s livelihood and the source of wealth, which is related to the vital interests of the people and the healthy development of the economy and society. In December 2019, the State Council issued the “Opinions on Further Stabilizing Employment” and made institutional arrangements to stabilize employment in the future. In March this year, the General Office of the State Council issued the “Implementation Opinions on Measures to Strengthen the Stabilization of Employment in Response to the Impact of the COVID-19 Epidemic” and unveiled a number of targeted emergency measures.

In Shanghai, the current employment situation is generally stable, with no large-scale layoffs or unemployment. The overall number of employment has gradually recovered. The surveyed unemployment rate and registered unemployment rate have also remained generally stable. However, various unfavorable factors will continue to affect the city’s employment for a long time. The overall employment situation is still grim, and a series of pro-employment policies are urgently needed to reduce the burden on enterprises, inject vitality into the market, and boost confidence of workers. According to the central government’s overall plan for stabilizing employment, Shanghai has formulated and issued the “Implementation Opinions on Further Stabilizing Employment and Promoting Development” (hereinafter referred to as “Implementation Opinions”).

I. Main features of the “Implementation Opinions”

First, the city will insist on overall planning, while taking into account the national deployment and the characteristics of the city. A series of new ideas and policies for stabilizing employment clearly defined in the national documents are fully reflected in the city’s “Implementation Opinions.” At the same time, more “Shanghai characteristics” have been incorporated into the “Implementation Opinions.” For example, taking advantage of Shanghai’s financial strength to further strengthen financial support policies for enterprises; promoting the construction of “new networks”, “new facilities”, “new platforms” and “new terminals”; expanding new employment space; closely leveraging the promotion of employment and recruitment of talent, in a bid to boost support for the employment of college graduates in key areas such as the Lingang Special Area and Yangtze River Delta Green Ecological Integrated Development Demonstration Area.

Secondly, the city will adhere to a problem-oriented approach, while taking into account short-term relief of conflicts as well as medium and long-term guarantee needs. In terms of relieving conflicts in the short term, various subsidies will be used to help enterprises and key employment groups overcome difficulties, including extending the duration of on-the-job training subsidies for employees at enterprises in difficulties, giving employers one-time subsidies to recruit key groups of people, and extending the duration of social insurance subsidies for flexible employment of people with difficulties in employment. In terms of medium and long-term guarantee needs, the latest spirits of stabilizing employment will be demonstrated, such as new financial support policies for small and medium-sized enterprises, a package of support policies for sole traders, lower institutional costs to stabilize foreign trade, and a series of measures to promote the employment of college graduates.

Thirdly, the city will adhere to innovation and quality improvement, taking into account the improvement of mechanism and innovation in services. In terms of mechanism improvement, it is proposed to improve the performance evaluation and incentive mechanism for financial services to private and small and medium-sized enterprises, while establishing a system to recommend demonstration carriers for credit villages, credit parks and entrepreneurship incubation. It is proposed to guide platform enterprises and professionals to form communication and coordination mechanisms with employees to improve a system to assess the employment situation together with multiple parties. In terms of innovation in services, it is proposed to establish an inter-departmental comprehensive service platform to strengthen the integration of production and sales, guide high-quality incubation carriers to undertake public service affairs, comprehensively promote flexible employment registration systems, promote the integration of public employment services with the unified online government services, and address high-frequency service matters without the need to meet each other.

II. Main contents of the “Implementation Opinions”

Closely following the targets of ensuring “six fronts” and safeguarding “six areas” put forward by the central government, with “stabilizing employment” as the overall goal and “protecting residential employment, basic livelihood and market entities” as the key chords, the “Implementation Opinions” are comprised of seven parts and 26 clauses. They generally include the following four parts:

First, efforts should be made to protect market entities with extra strengths. By increasing the level of burden alleviation, job market stabilization and financial assistance, the city can address the problem of high costs of enterprise operation and employment. Through a series of measures to guide enterprises to open up the domestic market, increase investment and stabilize foreign trade, the city can address the problem of job loss incurred by business contraction. By tapping domestic demands and fostering new momentum, the city can address the problem of creating and expanding employment space in new industries, new formats and new models. By increasing support to private businesses, the city can address the problem of low risk resistance capabilities among relevant groups.

Secondly, efforts should be made to broaden channels and protect employment. Through various subsidy policies to encourage employers to add new employment, the city can address the problem of weak job market competitiveness of some workers. By optimizing employment policies of startup firms, the city can address the problems of capital, site and capability faced by entrepreneurs. By supporting flexible employment and new forms of employment, strengthening guarantee of basic employment and stabilizing employment of college graduates, the city can solve critical problems that hinder employment among people adopting flexible working models, people with employment difficulties, as well as fresh college graduates. By promoting vocational skills upgrading and strengthening the basic capacity-building of vocational training, the city can address the problem of insufficient employment skills of workers. By attracting outstanding talents and ensuring the orderly employment in Shanghai, the city can address the problem of sustainable development of talents and labor force. By improving the employment service capacity and accelerating the construction of information service platform, the city can address the urgent needs of enterprises and workers for online employment services and the virtual handling of various businesses.

Thirdly, efforts should be made to strengthen people’s basic livelihood. Through the improvement of unemployment insurance policies, the city can enhance the protection of livelihood of those unemployed. By optimizing life guarantee measures of those in difficult situations, the city can strengthen their employment willingness and stability.

Fourthly, efforts should be made to improve employment mechanism and strengthen policy guarantee. By improving the organization and coordination mechanism, the guarantee mechanism of capital investment and the monitoring mechanism of employment, the city shall strive to build a stable employment system with concerted efforts, performance assessment, fund guarantee and situation monitoring in place.