As China’s largest cohort of new graduates enters an already challenging labor market, many are struggling to find employment amid the rapid integration of artificial intelligence in the workplace. Approximately 12.7 million graduates are expected to join the workforce this year, contending with a sluggish economy, high youth unemployment, and shifting job requirements driven by AI technologies.

Graduates like Jin Shangyu, a 26-year-old urban planning master’s degree holder from the University of Hong Kong, illustrate the obstacles faced by many young professionals. Despite applying to roughly 150 positions across Hong Kong and mainland China, she has yet to secure an internship or entry-level job. Jin’s concerns reflect a broader trend: AI is increasingly automating tasks previously performed by entry-level employees, making it difficult for new entrants to compete. For Jin and others, the traditional pathways to gaining experience are narrowing as companies automate early-stage project work and seek candidates with AI-related skills.

The impact of AI is compounded by China’s already saturated job market. The urban youth unemployment rate stood at 17.9 percent in July for residents aged 16 to 24, underscoring persistent challenges even before AI’s more recent disruptions. Experts note that while AI did not create underlying employment pressures, it has arrived amid an especially difficult economic period, reshaping employers’ hiring priorities. This dynamic strains graduates who must now compete not only with peers but also with AI-driven efficiencies that reduce demand for certain roles.

China’s government has expressed acute concern over the potential social and political consequences of youth unemployment. Beijing has signaled a resistance to workforce reductions justified solely by AI-driven cost savings, with courts reinforcing this stance and the government promoting targeted employment support in key industries. Some officials have suggested vocational training to help workers adapt to an evolving job landscape increasingly influenced by AI.

While AI has most strongly affected manufacturing and food delivery sectors, experts say its effects are now emerging in white-collar professions. In fields ranging from media to project management, job seekers report a growing disconnect between their education and employers’ expectations for practical AI-related experience. Zinnia Zhou, a recent master’s graduate in television broadcasting, has applied to over 2,800 jobs without success, observing a shift toward openings in AI-generated content production that her degree did not prepare her for.

Scholars highlight a “qualifications arms race” as candidates seek advanced degrees to remain competitive in a market increasingly demanding AI literacy alongside traditional skills. Some graduates remain hopeful that they can secure roles requiring interpersonal skills and complex judgment less susceptible to automation, yet the overall sentiment among many is one of uncertainty and frustration.

For now, many graduates are adapting by pursuing AI training courses or using AI tools to enhance their job applications. Jin describes the employment environment as chaotic, with some companies hurriedly adopting AI without clear strategies. As the market continues to evolve, new graduates are confronting an unprecedented period of upheaval, uncertain if and when conditions will stabilize.