In Depth: Cost-Cutting Freezes Over 35s Out of China’s Job Market

1. In March, Xu Yang, a 46-year-old Beijing resident, lost her job at a U.S.-based multinational software company due to rising U.S.-China trade tensions, which resulted in 70% of the company’s China-based staff being laid off, including almost the entire marketing department. Though braced for layoffs, Xu felt discarded and questioned her self-worth after her whole team was dismissed. Xu joined the approximately 200 million flexible workers in China as of 2023—making up over one quarter of the national workforce [para. 1][para. 2][para. 3].

2. Xu submitted hundreds of resumes during her subsequent job search. Despite her efforts, she encountered severe age discrimination, known as the "35-year threshold," whereby Chinese employers are reluctant to consider candidates over 35 years old. Research shows this type of bias peaks for workers in their mid-to-late 30s in China, negatively impacting both job security and mental health for middle-aged workers [para. 4][para. 5][para. 6].

3. Job prospects for workers over 35 worsened in 2025 as companies prioritized cost-cutting and sought younger candidates who are perceived as more adaptable and willing to work for lower pay. Many older workers, conditioned to expect higher salaries because promotions historically accompanied job changes, now face a sharp expectation-reality gap [para. 7]. At the same time, rapid industrial upgrades and the expanding technology sector have led to a mismatch between older workers’ skills and changing market demands, putting even more pressure on them [para. 8][para. 9].

4. Contrary to perceptions, the total number of unemployed workers aged 30 to 59 exceeds youth unemployment, and older workers face longer unemployment spells with fewer reemployment options when laid off [para. 10]. Both foreign multinationals and domestic private companies—responsible for 80% of China’s urban jobs—have made significant layoffs or closed due to economic volatility, policy shifts, and the fast-changing competitive landscape [para. 12][para. 13][para. 14][para. 15].

5. The job market is shifting structurally, with high-tech positions—especially in artificial intelligence and robotics—expanding rapidly. For example, robotics engineers and algorithm developers saw more than 50% year-on-year growth in postings, yet most older workers, especially those from shrinking sectors like internet services, real estate, and finance, lack the skills for these new roles, deepening the labor market divide [para. 17][para. 18][para. 19][para. 20].

6. Age bias persists despite policies intended to eliminate it. Some local governments have lifted age limits for public sector jobs, and the State Council has mandated the removal of age requirements in most online job postings. However, jobseekers still report hiding their real age to secure interviews, indicating entrenched discrimination [para. 26][para. 27][para. 28][para. 29].

7. Faced with these challenges, many older professionals turn to flexible or gig jobs. Xu, for instance, eventually accepted a part-time advertising planning job, allowing her to cover living expenses but at a much lower salary than before. Research shows flexible job postings rose to 15.2% of total postings in 2024. Simultaneously, the rate of jobseekers accepting flexible work rebounded to 36.4% [para. 33][para. 34][para. 35][para. 36].

8. For some, unstable job prospects and deteriorating financial security have prompted them to drop out of the labor force entirely, with NEET (Not in Education, Employment, or Training) rates among 30- to 34-year-olds climbing from 2.2% to 12.3% between 2018 and 2022 [para. 39][para. 40]. Laid-off workers also face high minimum social security contributions and rarely regain previous salary levels if reemployed [para. 41][para. 42].

9. Legal protections are limited, though some, like Wu Yu, have challenged discriminatory layoffs by leveraging labor law and seeking better compensation. Experts advocate for systemic reforms, urging age-inclusive hiring and promotion policies. However, cultural norms, vague laws, and economic concerns slow progress [para. 44][para. 45][para. 46][para. 47][para. 48][para. 49][para. 50][para. 51][para. 52].

10. The government has extended unemployment benefits and shifted focus to active reemployment support, such as skill-upgrading subsidies, yet the overall adjustment to China’s rapidly digitizing economy remains a significant hurdle for middle-aged workers [para. 54][para. 55][para. 56]. [para. 1][para. 2][para. 3][para. 4][para. 5][para. 6][para. 7][para. 8][para. 9][para. 10][para. 12][para. 13][para. 14][para. 15][para. 17][para. 18][para. 19][para. 20][para. 26][para. 27][para. 28][para. 29][para. 33][para. 34][para. 35][para. 36][para. 39][para. 40][para. 41][para. 42][para. 44][para. 45][para. 46][para. 47][para. 48][para. 49][para. 50][para. 51][para. 52][para. 54][para. 55][para. 56]