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Youth unemployment in China rises to 7.7% as AI displaces jobs
Unemployment among 25–29‑year‑olds in China rose to 7.7% as rapid adoption of artificial intelligence threatens to displace about 70 million jobs, official statistics and analyst reports show.
The National Bureau of Statistics recorded an increase in joblessness for the key early career demographic, from 7.2% in March 2025 to the current peak. Citigroup forecasts that widespread use of algorithms will ultimately remove tens of millions of positions across the economy. The technology pressure has hit entry-level job seekers particularly hard, as many face competition from automated systems immediately after completing their studies.
China’s overall unemployment rate stood at 5.4% last month, while the 16–24 age cohort registered a jobless rate of nearly 17%. Authorities revised labor market methodology earlier, establishing the 25–29 category to provide a more precise measure of the initial instability young people encounter when entering the workforce. The statistics office highlighted the heightened vulnerability of this age group to automation given an oversupply of young labor.
Elon Musk proposed addressing technological unemployment through a high universal income financed by the state, arguing that robotics would raise production of goods and services in volumes that outstrip growth in the money supply and therefore prevent inflation. Mr. Musk, whose net worth approaches $800 billion, said AI and robotics would enable production sufficient to avoid inflationary pressure from increased monetary transfers.
The shift in labor market dynamics poses a significant policy challenge for China as it seeks to harness AI‑driven productivity gains while limiting social and economic dislocation among new labor market entrants.
Published 27 April 2026
© InstaFintech Group
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© InstaFintech Group
