Xinhua News Agency’s Interpretation and Supplementary Commentary on China’s “10th Five-Year” Plan for Human Resources and Social Security Development
1. Employment will remain generally stable, with further progress toward high-quality and full employment.
During the 15th Five-Year Plan period, China aims to maintain a considerable scale of new urban employment. The plan sets the following targets:
- Maintain a substantial number of newly created urban jobs.
- Help 25 million unemployed urban residents regain employment.
- Assist 6.5 million people facing employment difficulties in finding jobs.
- Keep the surveyed urban unemployment rate below 5.5%.
- Provide subsidized vocational skills training to more than 50 million participants, including 17.5 million migrant workers.
2. The social security system will become more sustainable and better optimized, with improved coverage and benefit levels.
During the 15th Five-Year Plan period:
- The participation rate in the basic pension insurance system will remain above 95%.
- Enrollment in unemployment insurance and work-related injury insurance (including occupational injury protection) will reach 255 million and 345 million, respectively.
- Assets under enterprise annuity and occupational pension funds are expected to exceed RMB 9 trillion.
Commentary
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China operates two major basic pension schemes: the Urban and Rural Resident Basic Pension Insurance (for individuals outside formal employment) and the Employee Basic Pension Insurance (for employees). The Plan does not specify which scheme the 95% participation rate refers to.
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According to the 2025 Statistical Communiqué on National Economic and Social Development and the 2025 Ministry of Human Resources and Social Security (MOHRSS) Annual Report, China had approximately 725.04 million employed persons in 2025. Therefore, the Plan’s targets imply that unemployment insurance and work-related injury insurance are expected to cover roughly half of the country’s employed population by the end of the planning period.
3. The skilled workforce will continue to expand, further strengthening talent-driven high-quality development.
During the planning period:
- An estimated 14 million additional professional qualification certificates will be issued.
- Around 35,000 postdoctoral researchers will be recruited annually.
- 40 million additional vocational qualification or vocational skill certificates will be awarded, including 14 million certificates at the senior technician level or above.
4. The wage and income distribution system will become fairer and more comprehensive, contributing more effectively to common prosperity.
China will continue to uphold the principle of distribution according to work while allowing multiple forms of income distribution to coexist. The Plan calls for improving the primary income distribution mechanism by enabling market-based evaluation of factor contributions and remuneration based on those contributions, thereby promoting a fairer and more balanced income distribution system.
5. Governance in labor relations will be strengthened, with better protection of workers’ rights.
By the end of the 15th Five-Year Plan period, China aims to achieve:
- A 65% success rate in labor dispute mediation.
- A 93% case completion rate for labor arbitration.
- A 97% case completion rate for labor inspection complaints and reports.
Commentary
Under China’s current legal framework, labor mediation and arbitration generally do not impose additional punitive damages on employers. In most cases, employers are only required to pay wages or compensation that should have been paid originally.
Additional compensation ranging from 50% to 100% of the unpaid amount may only be ordered through labor inspection enforcement when an employer fails to comply with an official order to pay wage arrears.
According to the MOHRSS 2025 Statistical Bulletin, labor mediation and arbitration handled approximately 4.1 million cases, while labor inspection authorities investigated roughly 130,000 cases, representing a ratio of approximately 32:1. The 15th Five-Year Plan does not propose increasing the proportion or enforcement role of labor inspections.
6. Public service quality and accessibility will continue to improve, enhancing public satisfaction and accessibility.
The Plan aims to promote equal, inclusive, and convenient access to basic public services by establishing a universal, balanced, digital, and efficient human resources and social security service system.
By the end of the planning period, 90% of eligible residents are expected to possess an electronic Social Security Card (e-Social Security Card).
7. Regional coordination mechanisms will be further improved to support balanced regional development.
The Plan calls for fully implementing China’s regional development strategies and major regional initiatives while establishing a more coordinated human resources and social security governance framework characterized by complementary regional advantages and stronger interregional cooperation. This is intended to facilitate more balanced regional economic and social development.
https://www.news.cn/20260709/2d97d1bc820c48e389239b2b872cf31c/c.html
All of this is excellent.
The employment changes are a big deal. Nothing similar is ever done in capitalist countries. Hopefully this will make a real difference for the youth unemployment rate. It’s currently about 15% for 16-24 year olds who aren’t students (which makes sense, since high school education isn’t mandatory).
就业政策调整这里玩了一个文字游戏，“新增就业保持相当规模”，这里“相当规模”后面人社部出了一个解释“新增就业人数不再设置具体数字”，也就是说只要就业增加就是“保持相当规模”。
事实上中国就业不容乐观，上半年经济数据大型工业品销售额多为负增长，中国正处于典型的生产过剩危机中，如果提高工资就会触发中等收入陷阱导致资本主义外流降低就业，如果不提高工资就会导致内需不足
Machine translation:
There is a word game here in the adjustment of employment policy. “New jobs will be maintained at a considerable scale.” After “a considerable scale”, the Ministry of Human Resources and Social Security issued an explanation that “the number of new jobs will no longer set a specific number.” In other words, as long as employment increases, it will be “maintained at a considerable scale.”
In fact, employment in China is not optimistic. Economic data for the first half of the year mostly showed negative growth in the sales of large industrial products. China is in a typical overproduction crisis. If wages are raised, it will trigger the middle-income trap, leading to the outflow of capitalism and reducing employment. If wages are not raised, domestic demand will be insufficient.
Assuming that translation is correct, I think what it says about an overproduction crisis is correct - for a capitalist economy. Under socialism, the state can do any number of things differently. As specified in the plan, lifting 25 million people out of unemployment would help boost domestic demand. And of course, China is already heavily exporting its “surplus” products, which doesn’t depend on domestic demand or wages.
