China to use AI as millions of graduates seek jobs

China is moving forward with incorporating artificial intelligence into its workforce strategies. Recently, the country is using AI to tackle a record influx of university graduates entering the job market. China expects 12.7 million new graduates this year, a number larger than Belgium’s entire population.

Human Resources and Social Security Minister Wang Xiaoping stated that the government aims at utilising AI for upgrading traditional jobs and developing new channels for jobs through addressing demographic and economic challenges.

To attain its target of creating 12 million urban jobs by the year 2026, Beijing is focusing on internship and training programmes, particularly in industries that are growing.

Focus has been put on the ‘low-altitude economy', new energy vehicles, and generative AI. This shows that there is a shift from traditional manufacturing jobs to technology-driven industries, which can benefit from AI and enhance productivity.

Analysts at Goldman Sachs stated that AI can enhance productivity, but fresh graduates are faced with a huge skills gap, considering the high competition.

China’s approach positions AI not as a threat but as a tool to stabilise youth employment. By promoting AI for “role upgrading", the government aims to maintain a surveyed jobless rate near 5.5% through 2030. Market participants are also watching upcoming US-China trade talks, which could affect technology export policies and the country’s domestic labour strategies.