Key facts
- China's unemployment insurance fund reported a deficit of 9.13 billion yuan ($1.35 billion) in 2025.
- Benefit payments to unemployed individuals rose significantly.
- Lower contribution rates limited the fund's revenue.
- Total payments for basic living benefits reached 161.6 billion yuan, a 34.2% year-over-year increase.
China's unemployment insurance fund experienced an annual deficit of 9.13 billion yuan ($1.35 billion) in 2025. This shortfall was attributed to a substantial increase in payments to unemployed individuals and related support measures, which outpaced revenue generated from contribution rates that were lowered.
The Ministry of Human Resources and Social Security stated in its annual statistical report that the fund disbursed 161.6 billion yuan for basic living benefits. This figure includes direct unemployment payments and health insurance contributions made on behalf of the unemployed, marking a 34.2% rise compared to the preceding year.