Will AI Take Young People’s Entry-Level Jobs? The New York Times Examines Beijing’s Fears of Political Unrest

China is sending a record number of university graduates into the labor market this year, just as the economy slows and artificial intelligence begins to reshape the jobs they hoped to enter. The collision is making an already difficult start to working life even harsher.

According to China’s Ministry of Education, an estimated 12.7 million university graduates will enter the workforce this year. Like graduates in recent years, they face an oversaturated job market and must compete for a shrinking pool of entry-level positions while economic growth remains weak.

AI is adding another layer of uncertainty. The technology has begun disrupting China’s labor structure, replacing many traditional entry-level office jobs and changing what companies prioritize when they recruit. The growth of high-paying jobs sought by graduates has not kept pace with the surge in university enrollment.

The pressure is visible in the youth unemployment figures. In July, the urban unemployment rate for people aged 16 to 24, excluding students, reached 17.9 percent. The article says persistent youth unemployment could become a source of political instability for a leadership that has long relied on promises of economic prosperity to reinforce its legitimacy.

Scott Singer, co-director of the Carnegie Endowment for International Peace’s China AI Initiative, said even a small negative effect from AI on youth unemployment would be sensitive for the Chinese Communist Party. “China is very concerned about AI’s impact on the labor market, and this may be the core issue it cares about most regarding AI,” he said.

Worried that the AI revolution could trigger social and political disruption, Beijing is pressuring companies to avoid layoffs. Several court rulings have sent a clear signal that companies cannot use AI-related cost savings as a reason to dismiss employees. Experts say manufacturing and food delivery, two of China’s major employment sectors, are already feeling the effects of AI and automation most clearly, while the impact on white-collar work is only beginning to emerge.

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China is very concerned about AI’s impact on the labor market, and this may be the core issue it cares about most regarding AI.