Employment Effects of Fiscal Stimulus Policies Following the COVID-19 Pandemic

Abstract

Against the backdrop of the COVID-19 pandemic’s significant impact on the job market, this paper systematically evaluates the post-pandemic employment effects of China’s “Six Priorities and Six Guarantees” fiscal stimulus policy through case analysis. By selecting Beijing, Hunan, Hubei, and Henan as representative provincial-level case studies, the research examines the implementation mechanisms and outcomes of key policies—including unemployment insurance funds, job retention subsidies, and skills training subsidies—using multiple sources such as government documents, employment data, and policy reports. This study finds that while some negative impacts of the COVID-19 pandemic on the financial sector were effectively mitigated by China’s fiscal policies, regional variations in policy tools and their efficiency emerged across different areas. For instance, existing jobs were effectively stabilized by unemployment insurance funds and employment subsidies. Additionally, subsidies for skills training and support for innovation and entrepreneurship have created a significant number of new jobs. This study further reveals that the policy implementation models of “automatic qualification determination” and fund integration significantly influence policy effectiveness. Regarding the significance of this research, it not only provides empirical evidence for China’s post-pandemic employment policies but also offers insights for building a more precise, coordinated, and efficient employment system in the future.