Action plan unveiled to stabilize employment

China has unveiled an 18-point action plan to stabilize employment and raise incomes, including measures designed to shield the labor market from external shocks such as trade wars and geopolitical tensions, according to a government document released recently.

The plan, titled "Action Plan for Stabilizing Employment, Expanding Capacity and Improving Quality", was approved on April 30 by the State Council's leading group on employment promotion.

"Employment is the most fundamental aspect of people's livelihoods," the document said.

The action plan includes a dedicated section on supporting industries affected by the external environment to expand hiring, identifying them as a key source of job creation.

Authorities are instructed to extend unemployment insurance premium refunds, skills-training subsidies and job-expansion grants to sectors affected by global headwinds.

The central government will also use major trade fairs such as the China Import and Export Fair to explore new markets while deepening cooperation under the Belt and Road Initiative as an alternative to Western-dominated trade channels.

The plan explicitly calls for the creation of cross-border service jobs in research, design and inspection, reflecting shifts in offshore outsourcing. It also establishes a monitoring mechanism to track the impact of external shocks on hiring in key regions and industries, with contingency plans to enable rapid responses.

Beyond geopolitics, the plan relies on manufacturing and emerging technologies to generate employment opportunities.

Authorities will maintain a "reasonable share" of manufacturing jobs and promote orderly industrial transfers to central, western and northeastern China.

They will also launch an "Artificial Intelligence Plus" initiative to accelerate the digital transformation of factories, creating demand for data labelers and AI trainers.

New energy, advanced materials and low-altitude infrastructure projects are also identified as major sources of employment.

The plan calls for retraining programs to help workers in traditional industries adapt to the adoption of AI, with the aim of preventing job losses.

To reinforce a virtuous cycle of rising household incomes and domestic demand, the action plan seeks to boost consumption through cultural tourism venues linked to performing arts, sports, cuisine and winter activities.

Urban renewal and new infrastructure projects will also be used to create construction jobs, supported by a special employment loan program for the sector.

In social services, the plan expands eldercare and childcare capacity, including exploring a professional qualification system for providers of elderly care.

A nationwide pilot program for occupational injury insurance will cover new forms of employment, such as drivers for ride-hailing platforms, reflecting the continued growth of the gig economy.

The document also strengthens minimum-wage adjustment mechanisms, enhances oversight of wage arrears and illegal employment agencies, and streamlines procedures for business registration and unemployment assistance.

Employment impact assessments will be required for major projects and policies, signaling that job stability has become a cross-cutting priority for policymakers.

The Ministry of Education estimates that the number of new college graduates will reach a record 12.7 million in 2026, an increase of 480,000 from the previous year.

To help absorb them into the labor market, the action plan directs State-owned enterprises to increase campus recruitment by more than five percentage points compared with the previous year's level.

The new measures are part of China's broader push to build an "employment-friendly" development model, a concept first introduced in the nation's 15th Five-Year Plan (2026-30) and reaffirmed in this year's Government Work Report.

On the sidelines of the annual legislative meeting in March, Minister of Human Resources and Social Security Wang Xiaoping signaled a campaign to stabilize, expand and upgrade employment.

She outlined measures including supporting labor-intensive sectors such as foreign trade, construction and hospitality; tapping job potential in the digital economy, high-end manufacturing and modern services; and improving minimum-wage mechanisms, labor market regulation and protections for migrant workers' pay.

"The ministry is studying relevant measures to actively harness AI's role in creating new jobs and empowering traditional roles, advancing inclusive development that aligns technological progress with improvements in people's livelihoods," she said.

China has set a target of creating more than 12 million new urban jobs in 2026, in line with its GDP growth target of 4.5 percent to 5 percent this year.

lilei@chinadaily.com.cn