China Launches Sweeping Pilot Program to Fix Factory Labor Mismatch
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China has launched a pilot program in 39 cities designed to integrate human resource services with the manufacturing sector, aiming to resolve a chronic labor mismatch threatening the country’s industrial ambitions.
The Ministry of Human Resources and Social Security issued a notice recently outlining the plan, which seeks to improve how talent is developed and deployed across the nation’s factories. The pilot covers major industrial centers and provincial capitals, tasking them with using advanced HR tools to address the persistent difficulties manufacturers face in recruiting and retaining staff.
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- China launched a pilot HR-manufacturing integration program in 39 cities to address labor mismatches amid a shrinking manufacturing workforce, projected to fall to 100-120 million by 2025.
- The program encourages AI use, talent training alliances, and flexible gig-based employment, with about 31.1% of manufacturing staff estimated as dispatch workers.
- The pilot aims to evolve HR services beyond recruitment, focusing on workforce empowerment and stricter oversight of employment practices.
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- The article mentions that Li Jiahui is an intern at Caixin Media. No further information about Caixin Media is provided in the text.
- December 2024：
- Five Chinese government departments issued a broader policy directive to modernize labor market infrastructure in manufacturing.
- By the end of 2024：
- China's HR services industry comprised 74,100 agencies employing 1.09 million people.
- Recently, in 2025：
- The Ministry of Human Resources and Social Security issued a notice outlining a plan to integrate HR services with the manufacturing sector in 39 cities.
- As of 2025：
- The recruitment cycle for engineers and technical posts generally exceeds one month in manufacturing companies.
- 2025：
- Suzhou began experimenting with linking universities directly to enterprises to create 'talent training alliances' for smart manufacturing.
- 2025：
- Ningbo established a digital HR industrial park using AI algorithms to facilitate an average of 3,000 smart matches daily.
- 2025：
- Estimates suggest dispatch workers account for approximately 40 million people, or 31.1% of China's manufacturing workforce.
- 2025：
- The manufacturing workforce in China is projected to drop to between 100 million and 120 million.
- 2025：
- The HR services industry is encouraged to pivot towards empowerment, including skills development and deeper integration with the manufacturing supply chain.
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