The Chinese government has called upon local officials to enhance financial assistance and increase one-time allowances for individuals in need ahead of upcoming major holidays in the following month, as China’s economic challenges are expected to persist into 2025.
China’s economy has faced obstacles in gaining momentum this year, primarily due to a prolonged property crisis and subdued domestic demand. Prioritizing employment security, especially for recent college graduates, remains a focal point for authorities.
In preparation for New Year’s Day and the Lunar New Year towards late January, the Ministry of Civil Affairs has urged financially capable local governments to allocate relief funds and bolster one-time allowances for those experiencing hardship, as stated in a release on Saturday.
The ministry previously made a similar plea in late September before a significant holiday, advocating for one-off aid to the extremely impoverished, orphans, and individuals facing adversity.
According to the ministry’s recent statement, assistance must be reinforced for specific groups, including unemployed individuals lacking unemployment insurance benefits and those without a stable income.
Moreover, support should be extended to unemployed college graduates, individuals battling illness, and families encountering financial hardships.
Official data indicates that China’s unemployment insurance system disbursed 160.07 billion yuan ($21.93 billion) from January to November, marking a 25.5% increase from the previous year.
The ministry also emphasized the importance of local governments closely monitoring low-income segments of society.
In a recent report, the World Bank highlighted a slowdown in China’s poverty reduction efforts in 2024, with further deceleration anticipated in 2025 and 2026, largely attributed to projected slower economic growth in the coming years.
Analysts identify tepid household consumption as the primary drag on the economy and crucial for a growth resurgence next year. Policymakers have pledged to stimulate household demand.
