China expects skills mismatch in future labour market

China expects that skills mismatch will be the main problem in the labour market in the future, Gao Gao, deputy secretary general of the National Development and Reform Commission, told reporters on Monday following the release of the country’s new five-year employment plan through 2025. 

While the share of skilled workers has risen to about 30% of the workforce, it remains low compared with other manufacturing powerhouses, he said, according to Bloomberg.

China’s new five-year employment plan pledged to boost skill levels in the economy, with a focus on vocational education. The average years of education for the working age group will also be increased from 10.8 years to 11.3 years. 

“A labour shortage in the manufacturing sector is prominent” especially as demand for skilled workers rises, and workers in manufacturing grow older, Gao said.

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He also noted that the country needs to speed up the training of talents in key areas to match labour demand in the manufacturing sector. By 2025, China aims to add 55 million jobs and cap the unemployment rate at 5.5%.