Despite a positive start to the year in the job market, China continues to grapple with structural employment issues, particularly as it braces for a record number of college graduates in 2024. Human Resources Minister Wang Xiaoping addressed the ongoing challenges during a news conference on the sidelines of the annual parliament meeting in Beijing on Saturday.

While there has been growth in sectors such as artificial intelligence and big data, with 32,000 job fairs held so far this year, Wang emphasized the need for strengthened policy support to address youth employment and assist small private firms.

China is expected to see approximately 11.79 million college graduates this year, according to forecasts from the education ministry, adding to the pressure on the job market.

The government recently unveiled a target for economic growth of around 5% for 2024. However, despite headline indicators suggesting stability, challenges persist, especially among young people. Prior to the suspension of statistical reporting in June 2023, more than one in five Chinese aged 16 to 24 were unemployed. While data publication has resumed, it now excludes college students, with youth unemployment reported at 14.9% in December.

Amid a weak economy following the COVID-19 pandemic, there is increasing competition for white-collar jobs, prompting efforts to redirect graduates towards vocational and technical roles. However, a shortage of skilled talent remains a hurdle for the sector.

Wang stressed the importance of encouraging young people to acquire technical skills and pursue opportunities in manufacturing. China aims to create over 12 million new urban jobs this year and maintain the urban unemployment rate at around 5.5%. In 2023, 12.44 million urban jobs were added, with urban unemployment averaging 5.2%.

As China navigates these challenges, policymakers are focused on balancing economic growth with employment opportunities, especially for the younger generation, in efforts to sustain and strengthen the country's workforce.