State's push for internships a positive signal for market

The central authorities recently issued a circular announcing a plan to create 1 million internship positions to help college graduates and other groups find jobs.

According to the circular, at least 1 million internship positions will be created throughout the year to provide sufficient internship opportunities to the young. The total number of graduates in China will surpass 10 million this year, a record high. This huge number, combined with downward pressures on the economy because of the COVID-19 pandemic, could create employment problems in China.

The ministry's plan is to build a platform for interns, comprising not just fresh graduates but also those who have not been employed within two years of graduation, and unemployed youth between the ages of 16 and 24. The plan is expected to help unemployed youths temper their vocational capabilities, enhance their social skills and find jobs.

According to the plan, enterprises receiving interns should provide them with basic living expenses and personal accident insurance and bear the cost of guidance and management, to make internships attractive and increase graduates' enthusiasm. The plan will also offer the employing units certain subsidies in accordance with the relevant State provisions, to further strengthen their main responsibility and lubricate the implementation of relevant safeguards.

The plan also encourages enterprises to retain interns after their internship ends and for the State to raise subsidy standards for enterprises whose retention rate of interns is more than 50 percent.

The plan shows the country's efforts at promoting employment and striking a balance between the rights of interns and the employers' interests. The plan has introduced tax support and incentives to indicate that the internship subsidy expenses employing units incur are not included in their social insurance payment base. Expenditures complying with the tax laws can be deducted when calculating the taxable income of enterprises.

The emerging new forms of business, especially in the service industry, contain huge employment potential. Relevant departments, based on such new trends and changes, should strengthen communication and cooperation with takeout, express delivery, live broadcast and other platform enterprises, guide young people to establish a correct view of employment and maximize their advantages, to build a broader stage for their employment.