China’s government has introduced a comprehensive 18-point action plan aimed at stabilizing employment and increasing incomes amid ongoing global economic uncertainties. The plan, officially approved on April 30 by the State Council’s leading group on employment promotion, seeks to shield the domestic labor market from external shocks such as trade disputes and geopolitical tensions.
Titled the “Action Plan for Stabilizing Employment, Expanding Capacity and Improving Quality,” the document underscores employment as a critical foundation for people’s livelihoods and outlines targeted measures to support industries vulnerable to international challenges. These include extended unemployment insurance premium refunds, subsidies for skills training, and grants to encourage job creation in affected sectors.
To diversify trade and reduce reliance on Western markets, the plan advocates leveraging major trade events like the China Import and Export Fair and promoting cooperation through the Belt and Road Initiative. It also emphasizes the development of cross-border service roles in areas such as research, design, and inspection, reflecting changes in offshore outsourcing trends.
Recognizing the importance of manufacturing and emerging technologies, the government intends to maintain a stable share of manufacturing employment while guiding orderly industrial transfers to less developed regions such as central, western, and northeastern China. It plans to accelerate digital transformation through an “Artificial Intelligence Plus” initiative designed to generate demand for AI-related positions, including data labeling and training. Growth sectors such as new energy, advanced materials, and low-altitude infrastructure projects are also identified as significant sources of new jobs.
The plan addresses workforce adaptation by prioritizing retraining programs to help workers in traditional industries adjust to the increasing use of AI, aiming to minimize displacement. Additionally, boosting consumption is viewed as key to sustaining income growth, with cultural tourism, sports, culinary experiences, and winter activities targeted for development. Urban renewal and infrastructure projects are expected to create construction jobs supported by a specialized employment loan program.
Social service expansions form another pillar of the strategy, with increased capacity in eldercare and childcare facilities, coupled with the exploration of a professional qualification system for elderly care providers. In response to the gig economy’s growth, a nationwide pilot for occupational injury insurance will extend coverage to jobs like ride-hailing drivers.
Further measures include strengthening minimum wage adjustment mechanisms, improving oversight to prevent wage arrears and illegal employment practices, and streamlining business registration and unemployment assistance processes. Employment impact assessments will become mandatory for major projects and policies, reflecting an elevated prioritization of job stability across government initiatives.
The Ministry of Education projects a record 12.7 million new college graduates in 2026, up 480,000 from the previous year, placing additional pressure on labor absorption efforts. To accommodate this surge, state-owned enterprises are directed to increase campus recruitment by more than five percentage points over last year.
These efforts align with China’s broader goal to develop an “employment-friendly” economic model, first set out in the 15th Five-Year Plan (2026-2030) and reaffirmed in this year’s Government Work Report. At the National People’s Congress in March, Minister of Human Resources and Social Security Wang Xiaoping highlighted a campaign to stabilize, expand, and upgrade employment by supporting labor-intensive sectors such as foreign trade, construction, and hospitality; unlocking potential in digital economy and high-end manufacturing; and improving labor protections and wage mechanisms.
China aims to create over 12 million new urban jobs in 2026, consistent with its gross domestic product growth target of between 4.5 percent and 5 percent for the year.