Research On Employment Subsidy Policy Guided By Active Employment Policy

Active labor market policies, the measures widely used by countries around the world to deal with the problem of employment, promote employment more effectively as opposed to passive labor market policies. Regarded as a employment support policy with a direct financial subsidy and a market-oriented regulation means for government to solve the failure of the labor market, employment subsidy policy, the essential option of the active labor policies system, is a kind of active fiscal policies, which is supposed to encourage the employers to prefer the laid-off and unemployed workers or stronger the inclination for work of those unemployed.Accompanied with the implementation of the active labor market policies in China since2002, employment subsidy policies began to be widely carried out across the country. After many years of practice and gradual adjustment and improvement, the employment subsidy policy has played an important role in promoting employment and increasing the coverage of social insurance. However, the employment subsidy policies in China are still at a relatively junior stage, mainly reflected in:the limitations of policy design ideas, low policy coverage, simply standard of subsidies, poor synergies with other policies, the existence of moral hazard and lack of exit mechanism.Through the introduction of the theoretical basis of the employment subsidy policy and the practical situation of "two subsidies policy", mainly consisting of job subsidy and social insurance subsidy, in Wuxi urban area, analyzing the effect of the policy, this article expounds the exiting problems both in the institutional level and the implementation level of the policy, and then give proposals to adjust and improve the existing policy.