Challenges opportunities in China's changing job market

The COVID-19 pandemic has posed significant challenges in the job market due to its impact on business activities amid the downward pressure exerted by the micro-economy. A rising unemployment rate in countries and regions suffering from the epidemic has worried people, raising questions for policymakers about how to improve employment quality, optimize domestic demand structure and governance.

Considering the circumstances in China, which faces a decline in labor force due to an aging population, a mismatch between skills offered by employees and skills needed by companies, as well as uncertainties in international environment and other risks like COVID-19, stabilizing the job market is of high priority.

However, the impact of the epidemic should not be exaggerated. Opportunities can be anticipated in areas like flexible employment, information sharing, targeted talent training, new technological changes and the booming digital economy. Data from the National Bureau of Statistics showed unemployment rate in urban China reached 5.3 percent in January and 6.2 percent in February, compared with 5.2 percent in December 2019. The China Institute for Employment Research's CIER Index, which is a measure of the degree of supply-demand tension in the labor market, dropped from 2.47 to 1.02 in the first quarter year-on-year, meaning each job seeker faced 1.02 job vacancies.

The drop is partly caused by companies that reduced recruitment due to impact of the epidemic. Many companies suspended production and operations during the peak of the epidemic in China, especially in industries like hospitality, catering and tourism. The raging epidemic overseas also decreased demand in foreign trade and related jobs.