China jobs market remains ‘top priority’ as record number of graduates increase unemployment pressure

China ‘will continue to make employment the top priority of economic and social development’, the State Council meeting said on Monday

Earlier on Monday data showed the unemployment rate for those between the ages of 16-24 rose to 16.2 per cent last month from 15.4 per cent in June

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A record 9.09 million students will graduate this year, putting pressure on China’s labour market and the government to ensure there are enough jobs. Photo: AFP

Published: 9:50am, 17 Aug 2021Updated: 9:50am, 17 Aug 2021

China pledged to prioritise employment with its fiscal and monetary policies as the labour market remains under pressure, the country’s cabinet said on Monday.

China still faces relatively large employment pressure during the 14th five-year-plan period which ends in 2025, according to a statement released from the State Council meeting chaired by Premier Li Keqiang.

The cabinet also urged China to push for close to full employment with higher quality jobs during the period.

China “will continue to make employment the top priority of economic and social development as well as macro policies,” strengthen the government’s responsibility while maintaining the market’s dominant role to achieve higher-quality employment, the meeting said.

The cabinet called for all departments to “strengthen cross-cyclical policy adjustment” to make sure the economy operates within a reasonable range.

That is a new catchphrase that economists say reflects a greater focus on longer-term goals rather than short-term economic performance.

The State Council also said extreme weather has caused serious flood damage, while the coronavirus re-emerged in many provinces.