China to stabilize employment, markets, expectations

China to stabilize employment, markets, expectations

China to Stabilize Employment, Markets, and Expectations Through Coordinated Policies

China is intensifying efforts to stabilize employment amid economic challenges, leveraging policy coordination, financial support, and skills training to address structural labor market pressures. Recent measures include a focus on key industries, such as advanced manufacturing and the digital economy, as well as targeted support for vulnerable groups, including college graduates and migrant workers.

According to the Ministry of Human Resources and Social Security, China's average urban unemployment rate in 2025 was 5.2%, below the government's 5.5% target, with 12.67 million new urban jobs created—surpassing the annual goal. This success is attributed to reduced unemployment insurance premiums for employers (187.2 billion yuan in savings) and job stabilization refunds totaling 33.6 billion yuan. Additionally, subsidized training programs reached over 11 million job seekers, emphasizing sectors like AI, new energy vehicles, and low-altitude economy.

To address youth unemployment—a critical focus area—the ministry launched a 60-day campaign (December 18–January 18, 2026) targeting 2026 graduates, resulting in 718,000 preliminary job matches through 5.279 million openings. Innovative recruitment formats, including mall-based and evening job fairs, aim to expand access to employment opportunities.

Parallel efforts by the Ministry of Finance and other departments emphasize strengthening financing guarantees for private firms, particularly small and micro enterprises, to foster job creation and entrepreneurship. A new guideline outlines five priorities to integrate fiscal, financial, and labor policies, ensuring resources align with employment goals while promoting high-quality growth.

Despite progress, challenges persist, including structural skill mismatches and elevated youth unemployment (16.9% for the 16–24 age group in November 2025). Experts stress the need to align employment policies with industrial upgrades to ensure sustainable job quality.

Moving forward, China plans to roll out a new AI impact policy, a five-year employment strategy, and expanded social insurance for gig workers. These measures reflect a systemic approach to balancing short-term stabilization with long-term labor market resilience.

Ministry of Human Resources and Social Security, 2026: Ministry of Human Resources and Social Security, 2026.
Global Times, 2025: Global Times, 2025.