The Chinese government will encourage entrepreneurship and innovation in an effort to create more jobs and stabilise employment, according to Xin Changxing, vice minister for human resources and social security, reports Shanghai Daily.

The State Council last month rolled out specific measures on employment and entrepreneurship, which underscored the current pressure in the job market and urged proactive employment policies to be implemented.

The new policy better integrates entrepreneurship with employment, Mr Xin said.

In general terms, the threshold for starting a new business has been lowered, and more support will be provided for budding entrepreneurs. Current finance channels will be extended while taxes and related fees will be reduced, he added.

Mr Xin also addressed the employment situation as it applies to college graduates.

The government will encourage college leavers to pursue careers in rural areas, and support the creation of small businesses by providing guidance and favourable policies, he said.

Employee’s social insurance will also be subsidized for small and medium-sized enterprises that hire college graduates.

The number of college graduates who registered new businesses at the industry and commerce department last year rose 33% from 2013 to nearly 480,000, Xin said.

The government has pledged to create more than 10 million jobs in urban areas this year and promised that the registered urban unemployment rate will not rise above 4.5%.