New graduates in Qingdao will get some help finding work from the local government, city leaders announced recently.

Employment of graduates has always been a top priority for the city government, said Li Qun, Qingdao's Party chief, during a recent meeting.

"Employment is the key to improving the public quality of life. We will gradually enhance employment quality and optimize employment structure," Li said.

In the first half of this year, more than 37,000 new graduates found jobs, up 26 percent from the previous year.

In response to the "most challenging employment season" this year, the city has set aside 612 million yuan ($100 million) from its fiscal budget to boost employment, a year-on-year increase of 31 percent, according to the city's finance bureau.

Of that total, 86 million yuan will go toward a fund for graduate business startups.

The number of new graduates from colleges and universities of Qingdao reached 90,000 this year, a record high.

"It has created immense employment pressure for the government," said Zhou An, director of the finance bureau.

In light of these challenges, the city has adopted several measures to help graduates, he said.

The bureau has slashed administrative costs to make way for a special fund devoted to boosting employment, he said.

In conjunction with other departments, the bureau also rolled out a series of preferential policies that offer tax breaks and financial support for graduates who intend to start their own businesses.

The bureau has invested 130 million yuan since 2009 to build many startup incubators to help graduates.

Eligible graduates who start their own businesses are entitled to a one-time entrepreneurial subsidy of 5,000 yuan.

Meanwhile, a series of training programs are being held to equip them with essential skills.

The government is also teaming up with large companies to create internship opportunities for new graduates. Companies will be entitled to some subsidies for each intern they take in.

Nearly 40,000 graduates have benefited from the internship program since 2008, and about 70 percent eventually were recruited by these companies.

Private companies have always been the major driver of job creation, Zhou said.

The bureau allotted 14 million yaun this year to encourage small or even home-based businesses to employ recent graduates.

They will receive subsidies to cover the insurance for graduates for three years.

And the government set aside 8 million yuan to subsidize graduates who are willing to work in the rural areas.

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