China's 18-Point AI Jobs Plan: Advance Notice of Layoffs

China has issued an 18-point employment protection plan — issued by the General Office of the State Council and reported by Reuters — that requires companies to assess AI-driven job losses, notify affected workers in advance and help them move into new roles before large-scale automation takes hold.

The framework covers six broad areas:

• generating employment through AI
• making technology adoption more employment-friendly
• upgrading workers' skills
• strengthening employment services
• protecting labour rights
• monitoring employment-related risks

What does the plan change for workers?

The most concrete shift is procedural. Companies are asked to set aside a transition period before implementing AI at scale, giving employees time to prepare. During that window, employers should notify those affected and support their move into other positions through reskilling, internal redeployment or help finding jobs elsewhere.

Sectors subject to market-access requirements will face employment-impact assessments for AI projects, particularly where implementation could significantly reduce workforce numbers. Government departments are expected to coordinate assistance for displaced employees. Regulators are urged to weigh the extent and speed of automation in labour-intensive industries to avoid widespread disruption.

The plan cuts the other way too. It encourages wider AI use in occupations facing labour shortages or hazardous conditions, where automation could lift productivity and safety.

Reskilling as the core response

Beyond cushioning job losses, the plan positions AI as a job creator. Universities and vocational training institutions are encouraged to revise curricula, add AI-related courses and build industry-oriented programmes with businesses.

Specialised training is proposed for university graduates, young people, migrant workers and the unemployed. Displaced workers are to receive targeted career counselling, skills training, job referrals and help starting businesses. Eligible unemployed workers will qualify for unemployment insurance benefits. The government also plans to use AI itself to improve recruitment platforms, job-matching systems and benefit delivery.

Labour rights under algorithmic management

The framework tightens oversight of AI-driven HR systems. It targets algorithmic discrimination, fraudulent recruitment and violations of workers' privacy, and requires companies to safeguard rights to wages, rest, leave and occupational safety.

Social security coverage is set to expand for people in flexible and emerging forms of work. China also called for adjusting income-distribution mechanisms so workers share in productivity gains from AI.

Why now?

Official figures cited by Xinhua put China's core AI industry at more than 1.2 trillion yuan ($178.62 billion) in 2025, with over 6,200 AI companies operating nationwide. By end-2025, more than 30% of manufacturing enterprises with annual main business revenue of at least 20 million yuan had adopted AI technologies.

The government plans data-sharing across departments and early-warning mechanisms to track job creation, displacement and shifting skill requirements. AI-driven job losses would fall under existing mechanisms for tackling large-scale unemployment, backed by contingency measures and inter-agency coordination. The stated goal is AI-led growth that does not undermine employment stability — and for now, the world's largest manufacturing workforce has a rulebook that promises notice before the machines arrive.