The Chinese government urged local officials to provide more financial relief or step up one-time allowances to people in need ahead of major holidays over the next month, as China’s economic difficulties are set to extend into 2025.

China’s economy has struggled to gather steam this year, mainly due to a protracted property crisis and weak domestic demand. Securing employment, particularly for fresh college graduates, is also a policy priority, authorities say.

Ahead of New Year’s Day and the Lunar New Year in late January, local governments with financial capacity are encouraged to distribute relief funds or step up one-time allowances to those in need, the Ministry of Civil Affairs said in a statement published on Saturday.

The ministry issued a similar call in late September ahead of a major holiday for one-off assistance to the extremely poor, orphans and those in difficulty.

According to the ministry’s weekend statement, assistance to certain groups, such as unemployed people who have not been paid unemployment insurance and those without a source of income, must be strengthened. Jobless college graduates, the ill and families facing financial difficulties should also receive help, it added.

According to official data, China’s unemployment insurance system paid out 160.07 billion yuan ($21.93 billion) from January to November, up 25.5 per cent year on year.

The ministry also urged local governments to better monitor low-income groups.

The World Bank, in a report last Thursday, said the pace of China’s poverty reduction slowed in 2024 and is expected to decelerate further in 2025 and 2026, due largely to slower economic growth projected in years to come.

Tepid household consumption, the main drag on the economy, is the key to next year’s growth recovery, analysts say. Policymakers have vowed to revive household demand.