CHINA’S State Council said that the government will offer financial help to struggling firms that keep staff on payrolls in a time of increasing economic headwinds.

For firms that choose not to cut staff or reduce the number of job cuts they are planning next year, the government will return half of their unemployment insurance fees, the State Council, or Cabinet, said in a statement on its website Wednesday.

The government also said that “high attention” should be paid to the impact on employment from increasing economic downward pressure.

The government will also provide subsidies to out-of-job workers who are undergoing job training, the State Council added.

In early November, China flagged that it would take “targeted” steps to promote employment, but it did not specify measures would be tied to job retention.

Facing cooling economic growth, officials have pledged in recent months to reduce companies’ tax burdens in various ways, including cuts in social security contributions, to support business growth, profitability and employment.

Both official and private factory surveys have pointed to a prolonged period of job cutting in manufacturing, and the government is keen to keep employment stable as the trade spat with the United States has meant uncertainty for factory workers’ job prospects.

The newly-created national guarantee fund will offer guarantees for small businesses when it comes to securing bank loans, the government said, in a bid to guide more financial resources to support job creation.

China’s surveyed jobless rate in June was unchanged from May at 4.8 percent, official data showed. (SD-Agencies)