Latest news with #demographic crisis
News.com.au
3 days ago
- Business
- News.com.au
China to offer childcare subsidies in bid to boost birthrate
China's government will offer subsidies to parents to the tune of $768 per child under the age of three per year, Beijing's state media announced, as the world's second most populous nation faces a looming demographic crisis. The country's population has declined for three consecutive years, with United Nations demography models predicting it could fall from 1.4 billion today to 800 million by 2100. The nationwide subsidies apply retroactively from January 1, Beijing's state broadcaster CCTV said, citing a decision by the ruling Communist Party and the State Council, China's cabinet. 'This is a major nationwide policy aimed at improving public wellbeing,' CCTV said. 'It provides direct cash subsidies to families across the country, helping to reduce the burden of raising children.' There were just 9.54 million births in China last year, half the number than in 2016, the year it ended its one-child policy, which was in place for more than three decades. The population declined by 1.39 million last year, and China lost its crown as the world's most populous country to India in 2023. Marriage rates are also at record low levels, with many young couples put off having babies by high child-rearing costs and career concerns. 'Very costly' Parents in Beijing welcomed the fresh subsidies, but said more needed to be offered for them to consider having extra children. 'For young couples who just got married and already have a baby, it might actually encourage them to consider having a second child,' Wang Xue, a mother to a nine-year-old son, told AFP. 'After all, the subsidy does help ease their burdens … and also offers some psychological comfort.' But she said the new measures would not be enough to convince her to have a second child. 'Having one child is manageable, but if I had two, I might feel a bit of (financial) pressure,' the 36-year-old said. Zhang Wei, a 34-year-old father of a daughter and son, said the new subsidies were 'a good start' because raising children was getting more expensive. 'Compared to our generation, the costs have definitely increased exponentially,' he said. 'Groundwork for the future' While analysts said the subsidies were a step in the right direction, they warned that the new measures alone would not reverse China's population decline, nor boost its domestic spending slump. 'It is encouraging that the government finally moved to use fiscal subsidies to boost fertility,' Pinpoint Asset Management president and chief economist Zhiwei Zhang said. It also showed the government recognised the 'serious challenge' that low fertility rates posed for the economy, Mr Zhang added. Zichun Huang, China economist at Capital Economics, said the policy marked a 'major milestone' in terms of direct handouts to households and could lay the groundwork for more fiscal transfers in the future. But he said the sums were too small to have a 'near-term impact on the birthrate or consumption'. Many local governments have already rolled out subsidies to encourage childbirth. In March, Hohhot, the capital of China's northern Inner Mongolia region, began offering residents up to 100,000 yuan ($21,352) per newborn for couples with three or more children, while first and second children will be eligible for 10,000 ($2135) and 50,000 ($10,676) yuan subsidies. In Shenyang, in northeastern Liaoning province, local authorities give families who have a third child 500 yuan ($106) per month until the child turns three. More than 20 provincial-level administrations in the country now offer childcare subsidies, according to official data. Premier Li Qiang vowed to provide childcare subsidies during the government's annual work report in March. China's shrinking population is also ageing fast, sparking worries about the future of the country's pension system. There were nearly 310 million people aged 60 and over in 2024.
South China Morning Post
3 days ago
- Business
- South China Morning Post
China launches first national childcare subsidies in bid to tackle demographic crisis
China has announced its most significant central-level effort to reverse a deepening demographic crisis since allowing families to have three children, unveiling a long-awaited national childcare subsidy scheme that will provide up to 10,800 yuan (US$1,505) per child under the age of three. The move came amid mounting urgency among policymakers to stem the population decline and blunt its long-term drag on economic growth and social stability, after years of piecemeal local incentives that failed to reverse the downward trend. China will provide an annual childcare subsidy of 3,600 yuan for every child born on or after January 1, 2025, until they turn three – regardless of whether they are the first, second or third child, according to a government announcement on Monday. Children born before that date but still under three will also be eligible for a prorated subsidy based on the remaining months. More than 20 provinces across China have already experimented with childcare subsidies at various local levels. But this marks the first nationwide scheme introduced by the central government. 'The policy does mark a major milestone in terms of direct handouts to households and could lay the groundwork for more fiscal transfers in future,' said Huang Zichun, China economist at Capital Economics, in a report published on Monday. But he also pointed out that the sums involved were too small to have a near-term impact on the birth rate or household consumption.
CNA
3 days ago
- Business
- CNA
China to offer childcare subsidies in bid to boost birth rate
BEIJING: China's government will offer subsidies to parents to the tune of US$500 per child under the age of three per year, Beijing's state media said on Monday (Jul 28), as the world's second most populous nation faces a looming demographic crisis. The country's population has declined for three consecutive years, with United Nations demography models predicting it could fall from 1.4 billion today to 800 million by 2100. The nationwide subsidies apply retroactively from Jan 1, Beijing's state broadcaster CCTV said, citing a decision by the ruling Communist Party and the State Council, China's cabinet. "This is a major nationwide policy aimed at improving public wellbeing," CCTV said. "It provides direct cash subsidies to families across the country, helping to reduce the burden of raising children," it added. There were just 9.54 million births in China last year, half the number than in 2016, the year it ended its one-child policy, which was in place for more than three decades. The population declined by 1.39 million last year, and China lost its crown as the world's most populous country to India in 2023. Marriage rates are also at record low levels, with many young couples put off having babies by high child-rearing costs and career concerns. "GROUNDWORK FOR THE FUTURE" Analysts warned that the subsidies alone would not reverse China's population decline, nor boost its long-standing domestic spending slump. "The sums involved are too small to have a near-term impact on the birth rate or consumption," Zichun Huang, China economist at Capital Economics, said. "But the policy does mark a major milestone in terms of direct handouts to households and could lay the groundwork for more fiscal transfers in future." Many local governments have already rolled out subsidies to encourage childbirth. In March, Hohhot, the capital of China's northern Inner Mongolia region, began offering residents up to 100,000 yuan (US$14,000) per newborn for couples with three or more children, while first and second children will be eligible for 10,000 and 50,000 yuan subsidies. In Shenyang, in northeastern Liaoning province, local authorities give families who have a third child 500 yuan per month until the child turns three. Hangzhou, in eastern Zhejiang province, offers a one-time payment of 25,000 yuan to couples who have a third child. More than 20 provincial-level administrations in the country now offer childcare subsidies, according to official data. Premier Li Qiang vowed to provide childcare subsidies during the government's annual work report in March. China's shrinking population is also ageing fast, sparking worries about the future of the country's pension system. There were nearly 310 million people aged 60 and over in 2024.
Arab News
3 days ago
- Business
- Arab News
China to offer childcare subsidies in bid to boost birth rate
BEIJING: China's government will offer subsidies to parents to the tune of $500 per child under the age of three per year, Beijing's state media said Monday, as the world's second most populous nation faces a looming demographic crisis. The country's population has declined for three consecutive years, with United Nations demography models predicting it could fall from 1.4 billion today to 800 million by 2100. The nationwide subsidies apply retroactively from January 1, Beijing's state broadcaster CCTV said, citing a decision by the ruling Communist Party and the State Council, China's cabinet. 'This is a major nationwide policy aimed at improving public wellbeing,' CCTV said. 'It provides direct cash subsidies to families across the country, helping to reduce the burden of raising children,' it added. There were just 9.54 million births in China last year, half the number than in 2016, the year it ended its one-child policy, which was in place for more than three decades. The population declined by 1.39 million last year, and China lost its crown as the world's most populous country to India in 2023. Marriage rates are also at record low levels, with many young couples put off having babies by high child-rearing costs and career concerns. Analysts warned that the subsidies alone would not reverse China's population decline, nor boost its long-standing domestic spending slump. 'The sums involved are too small to have a near-term impact on the birth rate or consumption,' Zichun Huang, China economist at Capital Economics, said. 'But the policy does mark a major milestone in terms of direct handouts to households and could lay the groundwork for more fiscal transfers in future.' Many local governments have already rolled out subsidies to encourage childbirth. In March, Hohhot, the capital of China's northern Inner Mongolia region, began offering residents up to 100,000 yuan ($14,000) per newborn for couples with three or more children, while first and second children will be eligible for 10,000 and 50,000 yuan subsidies. In Shenyang, in northeastern Liaoning province, local authorities give families who have a third child 500 yuan per month until the child turns three. Hangzhou, in eastern Zhejiang province, offers a one-time payment of 25,000 yuan to couples who have a third child. More than 20 provincial-level administrations in the country now offer childcare subsidies, according to official data. Premier Li Qiang vowed to provide childcare subsidies during the government's annual work report in March. China's shrinking population is also aging fast, sparking worries about the future of the country's pension system. There were nearly 310 million people aged 60 and over in 2024.
Yahoo
15-07-2025
- Business
- Yahoo
Russia's population crisis is so dire, it's staring down a labor shortage of 11 million people by 2030, a minister told Putin
Russia could face a labor shortage of nearly 11 million people by 2030, its labor minister said. Birth rates have plummeted, and labor shortages have worsened because of the war in Ukraine. The demographic crisis is threatening the country's long-term economic stability. Russia is staring down a long-term economic threat that could outlast both the war in Ukraine and Western sanctions: a deepening demographic crisis. On Tuesday, Labor Minister Anton Kotyakov underscored the scale of the problem during a meeting with President Vladimir Putin. "Today, according to our estimates, by 2030 we need to involve 10.9 million people in the economy," Kotyakov told Putin, according to a post from the Kremlin. Kotyakov said the number is required to replace 10.1 million people who will reach retirement age, and 800,000 new jobs. Kotyakov warned that if productivity growth falls short of the assumptions built into the current forecast, there could be "an additional shortage of personnel." The remarks came during a Kremlin meeting focused on demographics and healthcare. Members of Putin's cabinet discussed efforts to boost birth rates, including financial incentives like cash payouts and tax breaks for large families. Putin has made population growth a national priority, calling it a matter of "ethnic survival" and encouraging women to have as many as eight children. In 2024, births in Russia fell to 1.22 million — the lowest level since 1999 — while deaths increased by 3.3% to 1.82 million, according to official data. The country's population was about 146 million last year. But boosting birth rates isn't Russia's only challenge. The war in Ukraine has exacerbated labor shortages, with battlefield injuries and deaths cutting into the working-age population and a brain drain pulling younger, educated professionals out of the country. The demographic outlook is so bleak that the country's population could halve by the end of this century, per a report from the Atlantic Council, a think tank, in August. Businesses are already feeling the heat. Employers are increasingly turning to retirees and even teenagers to fill roles. The labor shortage has driven up wages and fueled inflation, adding strain to an economy already distorted by wartime spending. By the end of 2023, Russia's economy was running so hot that the central bank warned of overheating. The momentum may be fading. Just last month, Russia's economy minister, Maxim Reshetnikov, warned that the country was "on the brink" of a recession. Read the original article on Business Insider
