High-quality and full employment, as emphasized in the 15th Five-Year Plan (2026-30), is not only about maintaining employment levels, but also about improving its quality. This effort will include refining the social security system further, with a particular focus on raising the incomes of workers.

Driving high-quality and full employment forward requires more than just low unemployment rates.

The basic structural issue in China's labor market today is a misalignment between the supply of skills and market demand. For example, a large number of students graduate in fields such as law, foreign languages, accounting and finance, while the market needs more skilled workers with practical, hands-on abilities for frontline roles.

At the same time, there is a shortage of talent in STEM (science, technology, engineering and mathematics) fields and technical occupations. The youth employment challenge is largely rooted in this structural mismatch. Many university graduates hold qualifications that do not align with actual market demands, resulting in a paradox: job seekers struggle to find work while companies struggle to fill vacancies.

For the youth, employment challenges mainly involve professional matching, job-seeking skills and understanding of labor market realities.

Some graduates lack clarity about market needs. They need to refine their job-hunting abilities and be more realistic in their career expectations.

In response to these structural challenges, China is adopting targeted and differentiated policy measures. For graduates, a regular employment promotion mechanism has been established.

Annual thematic meetings are convened to coordinate employment plans, while campuses strengthen career guidance and entrepreneurship training. Specialized job fairs are regularly organized, and dedicated online employment service platforms offer more comprehensive job resources and opportunities.

Over the past decade, perceptions regarding the impact of artificial intelligence on employment have shifted markedly among the public and academia. The initial view was that AI would replace repetitive tasks, with many economists expressing optimism.

However, recent advancements in generative AI and embodied AI have sparked widespread concern about their potential to displace both cognitive and manual labor. Indeed, this trend of displacement is real and may affect a broader range of occupations in the future.

Yet, technological displacement is often accompanied by new job creation. By enhancing labor productivity and boosting national output, AI would also help create new occupational categories and industrial value chains.

Future work models will gradually shift toward human-machine collaboration. However, it is crucial to recognize that displacement and creation are not synchronized in terms of timing, scale, or distribution across groups — displacement often precedes creation.

The impact of AI adoption may disproportionately affect groups such as young people and white-collar workers in the short term, while the creation of new roles will take some time. This necessitates a more sophisticated employment policy design and enhanced public services.

Importantly, within these challenges also lie opportunities. AI can help transform low-quality jobs, upgrade workers' skills and earnings, and reduce physical strain and safety risks in the workplace. This way, it can contribute to an overall improvement in employment quality.

The key to AI-driven employment transformation lies in proactive planning. Employment strategies should foster a new ecosystem where displacement and job creation interact constructively to reinforce each other.

China's employment development path differs significantly from that of many other countries. While many economies face job shortages, China has consistently focused on expanding employment capacity, enabling willing workers to enter the labor market, develop their skills and earn higher incomes.

Going forward, remote work and deeper forms of human-machine collaboration will become increasingly prevalent. This will also reshape labor relations and income distribution mechanisms. For example, workers proficient in AI technology may see rapid income growth. Concurrently, AI will empower many ordinary positions, facilitating their upgrading and transformation, thereby helping more workers enhance their skills and grow their incomes.

The author is a member of the 14th National Committee of the Chinese People's Political Consultative Conference and the head of the Chinese Academy of Labour and Social Security.

The views don't necessarily represent those of China Daily.