As employment pressures grow, China turns to AI to create new jobs and upgrade traditional roles

BEIJING – China is confident it can keep employment stable over the next five years and is studying how artificial intelligence can be harnessed to create new jobs and upgrade traditional roles, a top Chinese official said on March 7, even as uncertainties in the labour market grow.

Acknowledging that the rapid development of AI is having a profound impact on employment and has drawn widespread attention, Minister of Human Resources and Social Security Wang Xiaoping assured the public that stabilising employment is a key priority for Beijing.

“Employment is a family matter and even more so a national matter,” said Ms Wang.

“We are studying related policies to actively harness AI in creating new jobs and empowering traditional jobs, promoting inclusive development in which technological progress and improvements in people’s livelihoods advance in tandem,” she said.

Adding that China’s long-term economic fundamentals remain intact, Ms Wang said: “We have the confidence and the capability to maintain overall employment stability and continue improving the situation”.

The minister was speaking at a press conference held on the sidelines of the Two Sessions, or Lianghui, China’s annual parliamentary meetings in Beijing, where thousands of delegates have gathered to discuss national policies.

She was joined by four other heads of Chinese ministries and agencies who answered questions from domestic and international reporters for nearly 2½ hours on the government’s plan to improve citizens’ livelihoods in 2026.

Notably absent from the press conference was Housing Minister Ni Hong, who was part of the panel in 2024 and 2025 as the authorities sought to reassure the public over the country’s property downturn and falling home prices.

His absence in 2026 suggests a shift in emphasis towards employment, healthcare and social services as Beijing focuses on policies aimed at improving livelihoods.

Ms Wang’s comments at the press conference come as China faces growing labour market pressures, with 12.7 million university graduates expected to enter the workforce in 2026, the largest cohort on record.

The labour market situation is closely watched as the world’s second-largest economy slows and policymakers recalibrate growth targets.

China downgraded its 2026 national gross domestic product growth target to “4.5 to 5 per cent, while striving for better in practice”, as laid out in a government work report presented by Chinese Premier Li Qiang on March 5.

The move marks the first downgrade in three years, and the lowest target Beijing has set since 1991, with many economists saying the lower range reflects a more realistic assessment of slower structural growth amid demographic headwinds, weak consumption and rising geopolitical uncertainty.

Despite the more cautious growth target, Beijing aims to create more than 12 million new urban jobs while keeping its unemployment rate at about 5.5 per cent in 2026, goals that mirror those of 2024 and 2025, as laid out in the government work report.

China’s youth unemployment rate remained elevated, at 16.3 per cent in January, while the nationwide jobless rate averaged 5.2 per cent in 2025.

Employment remains a politically sensitive issue in the country due to its potential link to social unrest, and analysts say policymakers have long treated job creation as a core priority.

The year 2026 also marks the start of China’s 15th Five-Year Plan, which will shape government priorities throughout the country from 2026 to 2030.

A key theme is boosting technological self-reliance to support growth as competition with the US intensifies.

Associate Professor Kailing Shen, an economist at the Australian National University, told The Straits Times that Beijing’s focus on AI and new occupations reflects an effort to ensure that technological change supports, rather than disrupts, the labour market.

“By putting equal emphasis on new job creation and upgrading existing jobs, the strategy has a much higher chance of harnessing the benefit of AI and mitigating the potential negative shock that AI adoption might cause,” said Prof Shen, who researches China’s labour market.

China’s advantage lies in its huge pool of workers with science, technology, engineering and mathematics training, but the real “secret sauce” is in the rapid integration of industry and education, she said.

“We are seeing a shift towards ‘anticipatory’ training that uses big data to align vocational schooling with the needs of an AI-driven digital economy,” said Prof Shen, adding that the flexibility of the education and training landscape to respond to market demand will be particularly important.

At the press conference, Ms Wang said China had maintained overall employment stability despite the shocks of the Covid-19 pandemic and external pressures over the past five years.

This resilience was supported by the country’s complete industrial system, ultra-large domestic market and emerging growth drivers, which helped absorb labour demand, she said.

Still, Ms Wang acknowledged that new risks are emerging and employment stability “faces new changes and challenges”.

To address these pressures, Beijing will step up support for labour-intensive industries such as foreign trade, construction, dining and lodging while tapping employment potential in sectors including the digital economy and high-end manufacturing, she said.

China has created 72 new occupations over the past five years, such as AI trainers, drone pilots and healthcare workers, she added.

Beyond employment, officials at the press conference also addressed a range of public health and education issues, including student well-being and weight management.

Education Minister Huai Jinpeng said the authorities are strengthening efforts to promote students’ physical and mental health, including rolling out policies such as two hours of daily exercise and longer 15-minute breaks between classes nationwide, alongside expanded mental health support in schools.

National Health Commission director Lei Haichao gave an update on China’s nationwide weight management campaign, which started in 2024 as part of a broader multi-year push to curb obesity.

More than half of Chinese adults are currently overweight or obese. Health officials previously warned that this figure could rise to 70.5 per cent by 2030 if left unchecked.

Mr Lei said more than 5,500 medical institutions now operate weight-management clinics, and he also encouraged the public to get regular health screenings.