How to Solve Middle-Aged Unemployment (AI Translation)

【周刊提前读】破解中年失业：政策、社会、企业与个人均需调整

Summary:

This article provides an in-depth analysis of the employment challenges faced by middle-aged workers (particularly those 35 years and older) in China, using the case of Xu Yang, a 46-year-old professional laid off from a US-owned software company in Beijing after a decade of service. Her company significantly downsized its operations in China, with layoffs affecting about 70% of the local team due to pressures from US-China relations, trade frictions, and a strategic shift to reduce costs by outsourcing core operations to a general agent. These events highlight the growing uncertainty and vulnerability faced by employees in foreign enterprises operating in China, especially amidst ongoing US-China tensions and corporate attempts to manage risks and control labor costs after the pandemic [para. 1][para. 2][para. 3][para. 4].

For those over 35, the Chinese labor market presents pronounced barriers, with companies often preferring younger, cheaper hires. Xu Yang’s experience—submitting hundreds of applications but securing only a handful of interviews—reflects the systemic age discrimination predominant in Chinese recruiting practices. Research shows that age discrimination peaks as early as 35-40 in China, unlike in developed countries. Factors fueling this trend include heightened unemployment rates and a corporate focus on cost control and operational efficiency, pushing older workers out of the workforce or into precarious employment [para. 5][para. 6][para. 7][para. 8].

Statistics reveal diverging unemployment rates by age: in June 2024, workers aged 16-24 and 25-29 had unemployment rates of 14.5% and 6.7% respectively (higher than the previous year), while the rate for 30-59 stood at 4.0%. Although job pressure is heavier for younger adults, the total number of unemployed among 30-59-year-olds surpasses that of youth due to the group’s larger population share. More importantly, older unemployed workers face greater difficulties returning to work and are at higher risk of long-term unemployment, an issue exacerbated by China's ageing population and shifting demographics [para. 9][para. 10].

The market’s increasing demand for digital and technical roles—fueled by rapid industrial upgrades and disruptive technologies—has rendered many traditional skills obsolete. The hiring report from Liepin reveals explosive growth in AI-related job demand, but these new roles often exclude older candidates whose skills may lag behind, or who command higher salaries due to past experience [para. 11][para. 12][para. 13][para. 15]. Moreover, the shifting employment landscape and high vacancy rates in some office markets underscore a mismatch between supply and demand, particularly for older or traditionally-trained workers [para. 14][para. 16].

Job-seeking middle-aged workers, such as Xu Yang, often must lower their expectations and pivot to flexible or part-time roles, which now constitute over 200 million people—more than a quarter of China’s employed population. The growth rate of such positions has accelerated, with new flexible employment jobs rising from 8.4% in 2019 to 15.2% in 2024. However, these jobs offer limited social security coverage and are more vulnerable to market fluctuations [para. 17][para. 18][para. 19][para. 20][para. 21].

Legal frameworks have so far failed to address age discrimination adequately. Despite initial proposals, China’s Employment Promotion Law in its finalized version omitted age as a protected characteristic, leaving workers with little recourse against covert or overt age-based hiring practices. Some regions have relaxed age restrictions for civil service jobs up to 40 or 45, signaling a legislative shift, but major private sector recruitment still operates with implicit age caps [para. 23][para. 24][para. 25][para. 26][para. 27].

In response to mass layoffs, a portion of affected middle-aged professionals exit the job market altogether, swelling the ranks of “NEETs” (Not in Education, Employment, or Training), which has seen an increase among those aged 30-34. The risk of long-term unemployment threatens both individual welfare and economic stability [para. 22][para. 28][para. 29][para. 30][para. 31].

Policy measures point to the need for a multi-pronged response: government, business, and society must collaborate to build age-friendly employment systems through legal reforms, skills upgrades, and shifting employer mindsets. Experts urge enhanced legal protections, occupational reskilling, and more flexible, accessible social security for flexible workers. The government has recently focused on large-scale vocational training initiatives, but significant gaps remain in ensuring that digital transformation benefits middle-aged workers and does not leave them behind [para. 32][para. 33][para. 34][para. 35][para. 36][para. 37][para. 38][para. 39][para. 40][para. 41].

In summary, China’s middle-aged workers face daunting employment challenges due to age bias, skill gaps in rapidly changing industries, and insufficient policy protections. Improving job quality, legal safeguards, and access to upskilling for those over 35 will be essential for inclusive, sustainable labor market development in the face of demographic transition [para. 42][para. 43][para. 44][para. 45][para. 46][para. 47][para. 48][para. 49][para. 50].