Henan province's Nanyang municipal human resources and social security bureau, has enacted new policies to provide financial assistance for the unemployed to start businesses, local reports announced.

According to the newly-released policy, laid-off workers covered by unemployment insurance are entitled to grants of 5000 yuan ($753.66) when seeking self-employment, as well as a one-off subsidy within their insurance period.

Meanwhile, insurance-participating employers that have concluded labor contracts with employees laid-off for a term of one year or longer, can apply for job assignment allowance at the local unemployment insurance office.

The policies are expected to inject fresh life into the local job market, and propel economic development.