China has unveiled an action plan to stabilize employment.

China has unveiled an 18-point action plan to stabilize employment and increase incomes. According to a recently released government document, the new measures are intended to protect the labor market from external shocks, such as trade wars and geopolitical tensions.

The plan, titled "Action Plan for Stabilizing Employment, Expanding Capacity, and Improving Quality," was approved on April 30 by the leading group of the State Council for Supporting Employment. The document emphasizes that employment is the most fundamental aspect of people's living conditions.

The plan includes a special section dedicated to supporting industries that are affected by external factors while also expanding hiring. These industries are identified as an important source of new jobs. Government agencies are expected to extend unemployment insurance benefits, provide subsidies for vocational training, and offer grants for expanding jobs in sectors affected by global adverse influences.

The Chinese central government also intends to use major trade fairs, such as the China Import and Export Fair, to seek new markets. At the same time, it plans to deepen cooperation within the Belt and Road Initiative as an alternative to trade channels dominated by the West.

The plan explicitly calls for the creation of cross-border jobs in services, such as research, design, and inspection. This is a response to changes in the area of offshore outsourcing. The document also introduces a monitoring mechanism to track the impact of external shocks on employment in key regions and industries. Contingency plans are also being prepared for a rapid response.

In addition to geopolitical risks, the plan also focuses on manufacturing and new technologies. Government agencies are expected to maintain a "reasonable share" of jobs in manufacturing and promote the orderly transfer of industry to central, western, and northeastern China. The "Artificial Intelligence Plus" initiative will also be launched to accelerate the digital transformation of factories and create demand for workers in the areas of data labeling and training artificial intelligence systems.

The document also identifies new energy, advanced materials, and low-altitude infrastructure projects as important sources of jobs. The plan also includes provisions for retraining workers in traditional industries to adapt to the introduction of artificial intelligence and prevent job losses.

To support household income growth and domestic demand, China intends to promote consumption through cultural tourism linked to theater, sports, gastronomy, and winter activities. Job creation in the construction sector is also expected to increase through urban renewal and new infrastructure, supported by a special credit program for employment in this sector.

In the social services sector, the plan expands capacity for elderly and childcare services. The introduction of a professional qualification system for caregivers for the elderly will also be explored. A national pilot program for insurance against workplace accidents is expected to cover new forms of employment, such as drivers for ride-hailing platforms, reflecting the continued growth of the gig economy.

The document also strengthens mechanisms for adjusting the minimum wage, monitoring unpaid wages, and combating illegal labor agencies, and simplifies procedures for registering businesses and providing unemployment assistance.

For major projects and policies, a new requirement will be introduced to assess their impact on employment. This indicates that job stability is becoming a cross-cutting priority for Chinese policymakers.

The Chinese Ministry of Education estimates that the number of new university graduates will reach a record 12.7 million in 2026, an increase of 480,000 compared to the previous year. Therefore, the action plan requires state-owned enterprises to increase recruitment from universities by more than five percentage points compared to the previous year.

These new measures are part of China's broader effort to build a development model that is conducive to employment. This concept was first introduced in the 15th five-year plan for the years 2026 to 2030 and was reaffirmed in this year's government report.

The Minister of Human Resources and Social Security, Wang Xiaoping, had already announced a campaign to stabilize, expand, and modernize employment on the sidelines of the March legislative session. She mentioned support for labor-intensive industries such as foreign trade, construction, and hospitality, as well as the utilization of the potential of the digital economy, high-end manufacturing, and modern services.

According to Wang Xiaoping, the ministry is exploring measures to actively utilize the role of artificial intelligence in creating new jobs and strengthening traditional professions. The goal is inclusive development that connects technological progress with improving people's living standards.

China has set a goal of creating more than 12 million new urban jobs by 2026. This plan aligns with this year's GDP growth target of 4.5 to 5 percent.

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