China Macro Tracker Blueprints for employment strategy

Research evidence excerpt

China Macro Tracker Blueprints for employment strategy

10 June 2026

China Macro Tracker EconomicsChina

Blueprints for employment strategy

◆ China approves the implementation of a sub-strategy FYP Erin Xin

Senior Economist, Greater China

focused on employment The Hongkong and Shanghai Banking Corporation Limited

erin.y.xin@hsbc.com.hk

◆ Increased flexibility in the housing provident fund policy can +852 2996 6975

complement the new urbanisation plan TaylorEconomist,WangChina

The Hongkong and Shanghai Banking Corporation Limited

◆ US proposed Section 301 tariffs of 12.5% on China, but also taylor.t.l.wang@hsbc.com.hk +852 2288 8650

proposed lowering tariffs on cUSD30bn of Chinese goods Jing Liu

Chief Economist, Greater China

China approves implementation of a sub-strategy FYP focused on employment jing.econ.liu@hsbc.com.hk

China’s labour market, which has been under pressure, will be getting a boost. The +852 3941 0063

15th Five-Year Plan (2026-30) for implementing the employment-first strategy was Heidi Li

Associate

approved at a State Council executive meeting on 5 June. The meeting stressed Guangzhou

stronger support for key groups such as university graduates and flexible workers

(e.g. gig workers), alongside enhanced protection of labour rights and interests, to

stabilise employment expectations and bolster confidence. Weak employment

expectations are weighing on consumption, with the employment component of

consumer confidence persistently lagging income and the headline index (chart 1,

see China’s cautious consumer, 22 May 2026).

Employment pressure on key groups continues to intensify, with another expected

record in graduate supply in 2026 (12.7mn) and double-digit youth unemployment

(April: 16.3%) reinforcing cautious consumption.