New efforts needed to match skills with demand

Editor's note: China aims to develop high-quality employment during the 15th Five-Year Plan (2026-30) period. Shanghai Observer spoke to Wu Ruijun, director of the Institute for Talent Development Strategy at East China Normal University; Ding Xiaoqin, chief researcher in the Chinese Modernization Institute at Shanghai University of Finance and Economics; and Zhan Yubo, vice-director of the Institute of Economics at the Shanghai Academy of Social Sciences, on the integration of high-quality development and employment. Below are excerpts of the interviews. The views don't necessarily represent those of China Daily.

China's demographic shifts have made the traditional growth model increasingly unsustainable. At the same time, industrial upgrading, technological developments and the rapid advancement of artificial intelligence are reshaping the labor market, leading to pronounced structural employment mismatches.

Although record numbers of university graduates enter the labor market each year, sectors such as advanced manufacturing, elderly care and the digital economy still face a persistent shortage of workers. This paradox of labor shortage amid employment challenges highlights the need to integrate employment objectives into industrial policy, demographic strategy and technological innovation.

As China develops new quality productive forces, accelerates its digital transformation and expands the green and silver economies, equal attention should be given to cultivating emerging occupations and creating new employment opportunities.

Establishing comprehensive labor market forecasting and employment monitoring systems in key industries will better align education with market demands. Dynamic adjustments to academic disciplines, enhanced industry-academia collaboration and a lifelong vocational training system will equip workers with the skills needed to adapt to industrial transformation and technological change.

A unified and efficient national labor market, supported by modern employment services and information sharing, will facilitate labor mobility and improve the matching of skills with jobs, allowing industrial upgrading and employment optimization to advance in tandem.

Enterprises should be encouraged to adopt employment-friendly digital transformation strategies. Promoting the integration of AI with the real economy can foster new growth engines in areas such as intelligent manufacturing and digital services.

At the same time, the development of occupational standards and certification systems for emerging professions should be accelerated. Targeted digital skills training and reskilling programs are essential to help workers transition into new occupations.

For those affected by technological change, stronger social protection and transitional support, including training subsidies and job retention programs, are necessary to ensure that technological progress translates into broader employment opportunities, higher incomes and improved living standards.

Employers should modernize their hiring practices by moving beyond an excessive reliance on academic credentials, seniority or institutional background. Instead, greater emphasis should be placed on practical skills, professional competence and job performance. A more inclusive labor market should provide opportunities for university graduates, skilled workers, career changers and workers in emerging forms of employment.

Enhancement of social security and occupational injury protection for flexible workers, together with greater public recognition of skilled workers, grassroots professionals and entrepreneurs, will help cultivate a culture that respects work, values skills, encourages innovation and supports entrepreneurship.