On October 8, the State Council Information Office held a press conference to discuss a comprehensive package of policies aimed at stabilizing economic growth and promoting favorable structural adjustments. Li Chunlin, Deputy Director of the National Development and Reform Commission, emphasized the effectiveness of various policies designed to stabilize growth and employment this year, which have contributed to a generally stable job market.

During the conference, a reporter raised a crucial question about how the Chinese government plans to create job opportunities for those transitioning from traditional labor-intensive industries such as real estate, particularly as the economy pivots toward high-quality development. This inquiry was particularly timely, considering that youth unemployment was around 18% in August. Given this context, how does China plan to achieve full employment?

In response, Li highlighted that steady employment policies have been in place all year, helping to maintain overall job market stability. He noted that over the first eight months of this year, the urban surveyed unemployment rate averaged 5.2%, which is a slight year-on-year decrease of 0.1 percentage points. He acknowledged that the labor force is naturally transitioning from lower productivity sectors to higher productivity ones, a trend he described as normal. Furthermore, advancements in technology are not only driving economic and industrial upgrades but also creating new career paths and job opportunities. For instance, the rapid growth of the low-altitude economy has led to the emergence of roles such as drone operators, with a reported talent gap of one million in this field alone. Additionally, the electric vehicle repair industry is currently seeing employment numbers below 100,000 in China, with projections estimating a shortage of 1.03 million skilled workers by 2025.

Li also pointed out that clear directives on employment initiatives were laid out during the Central Political Bureau meeting on September 26. He emphasized that expanding employment is fundamentally linked to development, particularly high-quality development. As the National Development and Reform Commission moves forward, it will vigorously implement a job priority strategy, enhance macro policy coordination, and foster a positive understanding of employment, emphasizing development as a driving force for job creation.

First, Li stressed the importance of expanding effective demand to generate new employment growth opportunities. This strategy includes leveraging central budget investments to stimulate private sector investment, a point echoed by other officials during the conference. Significant measures, including initiatives tagged as “two key” and “two new,” will be expedited to provide support for projects that can effectively create jobs. For example, a specialized central budget investment of 10.9 billion yuan last year resulted in 290,000 low-income rural residents finding nearby employment, with each individual averaging an income of 10,000 yuan—a clear testament to the potential job creation impact of these initiatives.

Second, Li emphasized enhancing job creation effects in emerging industries. He advocated for the development of new productive forces tailored to local contexts and the nurturing of strategic emerging sectors such as information technology, environmental protection, biotechnology, new materials, and renewable energy. These fields are expected to yield more knowledge and skill-oriented positions.

Third, expanding employment opportunities in the service industry is essential. Li urged for innovative growth in service consumption and the rapid cultivation of new consumption scenarios, especially aimed at serving the aging population, which continues to grow in China. This includes unlocking employment potential in social services like elder care, housekeeping, childcare, and logistics. For instance, while around 30 million people currently work in China’s housekeeping sector, market demand is estimated at 50 million, highlighting a significant shortage of quality service providers.

Finally, Li underscored the critical role of vocational education and skills training in promoting employment. He called for a coordinated approach to resource allocation to strengthen investments in skills training infrastructure, guiding local efforts to create effective public training bases and platforms that integrate education with industry. This approach should be tailored to meet labor market demands, enabling workers to engage in targeted training programs, thereby enhancing their skills and improving their employment prospects.