Unemployment insurance aims at supporting employees who are being laid off and become unemployed. Its purpose is to provide unemployed people with benefits to ensure their basic income and promote their return into employment.
Unemployment insurance is generally based on contributions made by both employers and employees. In some countries taxes are used for the payment of unemployment benefits while others build on both pillars to finance this branch of social security.
Among current issues in China related to unemployment insurance are questions of coverage and portability – particularly in relation to migrant workers, the forecasting of labour market developments with a view to being better prepared, and the development of pro-active employment promotion measures in order to ensure a fast return of unemployed people into jobs. Improving the employability of farmers who lost their land is another important issue.
