Authorities expect about 12.7 million graduates this year, a figure larger than the entire population of Belgium. The surge has intensified pressure on the labour market, prompting the government to explore new approaches to employment.
According to Wang Xiaoping, China’s minister of human resources and social security, the government plans to use artificial intelligence to upgrade traditional job roles while also creating new employment channels. The initiative is part of a broader strategy to address demographic challenges and shifting economic conditions.
Beijing has set a target of creating around 12 million urban jobs by 2026. To achieve this, policymakers are expanding internship and vocational training programmes, particularly in rapidly developing sectors.
Key areas of focus include the so-called low-altitude economy, the fast-growing new energy vehicle industry, and advances in generative AI. The strategy reflects a gradual shift away from labour-intensive manufacturing toward technology-driven industries that can benefit from automation and higher productivity.
Analysts at Goldman Sachs note that while artificial intelligence has the potential to boost productivity, many new graduates still face a significant skills gap in an increasingly competitive labour market.
China’s policy approach frames AI not as a threat to employment but as a tool for stabilising youth job prospects. By encouraging the use of AI for “role upgrading,” the government aims to keep the surveyed urban unemployment rate near 5.5 percent through 2030.
At the same time, global market participants are closely monitoring upcoming trade negotiations between China and the United States, as the outcome could influence technology export restrictions and shape China’s long-term labour and industrial strategies.
