- China unveils an 18-point employment plan to address AI's impact on jobs
- Companies must assess AI job losses and notify affected employees in advance
- The plan emphasizes reskilling and facilitating worker transitions to new roles
At a time when artificial intelligence has thrown a huge challenge of job security, the China has unveiled an 18-point employment protection plan aimed at cushioning the impact of AI on the workforce, asking companies to assess the potential job losses arising from automation, notify affected employees in advance and facilitate their transition into alternative roles.
Issued by the General Office of China's State Council, the framework aims to address the employment challenges arising from the country's accelerating AI adoption. It seeks to ensure that the push towards automation and technological innovation is accompanied by safeguards for workers as businesses expand the use of AI across industries, Reuters reported.
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The framework sets out measures across six broad areas, including generating employment through AI, making technology adoption more employment-friendly, upgrading workers' skills, strengthening employment services, protecting labour rights and monitoring employment-related risks.
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What China's 18-point AI employment plan proposes
The framework recommends that companies set aside a transition period before implementing AI on a large scale, allowing workers time to prepare for potential changes to their employment. During this period, employers are encouraged to notify employees who may be affected and help them move into other positions through reskilling initiatives, redeployment within the organisation or assistance in securing jobs elsewhere.
The guidelines also call for employment-impact assessments of AI projects in sectors subject to market-access requirements, particularly where their implementation could significantly affect workforce numbers. Relevant government departments are expected to coordinate assistance for employees facing displacement.
The guidelines caution against rapid AI integration in industries that rely heavily on human labour, urging regulators to weigh the extent and speed of automation to prevent widespread workforce disruption and minimise the risk of job losses. However, the guidelines encourage wider use of AI in occupations facing labour shortages or hazardous working conditions, where automation could improve productivity and workplace safety.
Focus on reskilling and emerging job opportunities
Beyond cushioning potential job losses, the plan seeks to position AI as a source of new employment opportunities. Universities and vocational training institutions have been encouraged to revise their curricula, introduce more AI-related courses and collaborate with businesses to develop industry-oriented training programmes.
Specialised training initiatives are proposed for university graduates, young people, migrant workers and unemployed individuals. Public training centres and private businesses are also expected to contribute to improving digital capabilities and preparing workers for changing job requirements.
Employees displaced by AI adoption are to receive targeted career counselling, skills training, job referrals and assistance in starting businesses. Eligible unemployed workers will also be entitled to unemployment insurance benefits.
The government plans to leverage AI itself to improve employment services, including recruitment platforms, job-matching systems and the delivery of employment-related benefits.
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Labour rights and social security safeguards
The framework places considerable emphasis on protecting workers as human-machine collaboration becomes more common in workplaces.
Companies are expected to safeguard employees' rights to wages, rest, leave and occupational safety. The guidelines also call for tighter oversight of AI-driven human-resource management systems to address algorithmic discrimination, fraudulent recruitment practices and violations of workers' privacy.
Another important component is the proposed expansion of social security coverage for people engaged in flexible employment and emerging forms of work.
China has also called for adjustments to income-distribution mechanisms to ensure that workers share in the economic gains generated by AI-driven productivity improvements.
Why China is stepping up employment safeguards
The policy push comes amid the rapid expansion of China's AI industry and its growing penetration across the manufacturing sector.
According to official figures cited by Xinhua, China's core AI industry was valued at more than 1.2 trillion yuan ($178.62 billion) in 2025, with over 6,200 AI companies operating across the country. By the end of 2025, more than 30% of manufacturing enterprises with annual main business revenue of at least 20 million yuan had adopted AI technologies.
The government also plans to strengthen employment-risk monitoring through data-sharing among departments and early-warning mechanisms to track job creation, displacement and changing skill requirements. The plan also seeks to bring AI-driven job losses within existing mechanisms for tackling large-scale unemployment, backed by contingency measures and coordination among government agencies.
The broader objective is to ensure that AI-led growth does not undermine employment stability, with worker protection and reskilling forming part of China's wider technology push.
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