BEIJING, May 7 -- China's newly announced plan to boost employment and entrepreneurship is positive for its sovereign credit, global rating agency Moody's Investors Service said Thursday.

China's State Council, the cabinet, rolled out four measures last Friday encouraging innovation and job creation. The measures were included in the guidelines on employment and entrepreneurship work under the new situation, urging proactive employment policies to be implemented. These measures will support consumption and social stability, while fostering the private sector as the driver of economic growth, Moody's said in a report.

The announcement comes a day after China reiterated its willingness to apply targeted moves to avoid a sharp slowing in growth that would weigh on jobs, the report said.

"Since China's GDP growth began decelerating in 2009, the increase in employment has remained robust. At the National People's Congress in March, the government maintained last year's urban job creation target of about 10 million, following the generation of 13.2 million new positions in China's cities in2014," said Moody's.