China’s State Council has unveiled a new five-year plan to implement the country’s “employment-first strategy”, pledging to maintain a stable labour market and guard against large-scale unemployment risks as the economy undergoes structural changes.

The plan, released on Wednesday, outlines measures aimed at preserving jobs in traditional industries while expanding employment opportunities in fast-growing service sectors and emerging technologies.

Focus on Labour-Intensive Industries

Chinese authorities said they would work to stabilise employment in labour-intensive sectors that remain major sources of jobs. These include light manufacturing, textiles, foreign trade and construction.

The move comes as policymakers seek to balance economic restructuring with the need to sustain employment amid slowing growth and changing industrial priorities.

Expanding Opportunities in Services

The plan also identifies the service sector as a key driver of future job creation.

Beijing intends to encourage employment growth in elderly care, childcare, tourism, catering and other consumer-oriented services, reflecting China’s ageing population and rising demand for domestic services.

Officials view these sectors as important sources of new employment opportunities capable of absorbing workers from traditional industries.

AI to Support Employment and Entrepreneurship

A major feature of the strategy is its focus on artificial intelligence and the changing nature of work.

The State Council said China would adapt to advances in AI by promoting both employment and entrepreneurship. Authorities plan to explore new models of human-machine collaboration and encourage the development of emerging occupations linked to technological innovation.

The government also aims to use AI tools to improve public employment services and strengthen job creation efforts.

Balancing Innovation and Employment

The plan highlights Beijing’s attempt to balance rapid technological development with labour market stability.

While automation and AI are expected to transform industries, Chinese policymakers have repeatedly stressed the importance of ensuring that technological progress creates new opportunities rather than triggering widespread job losses.

The latest blueprint signals that employment stability will remain a central policy priority as China navigates economic restructuring and seeks new sources of long-term growth.

(with inputs from Reuters)