July 2025 was a big month for China’s labour policy. The government rolled out some major changes aimed at strengthening employment and keeping up with how work is changing. On July 9, the General Office of the State Council unveiled guidelines to improve one-stop government services, put out a directive focused on keeping jobs stable, with a special push to support small and medium-sized businesses (SMEs). Since SMEs employ most people in China, this helps enhance policy support to stabilise employment. The government is making it easier for them to get special loans, join public job creation projects, and get incentives for hiring recent graduates, rural workers, and people who’ve been out of work for a while.
Source: State Council Gazette Issue No.20 Serial No.1883 (July 20, 2025)
One of the most notable developments in July 2025 saw an increase in the national minimum wage, which now averages 2,390 yuan per month across provinces, according to the International Labour Organisation’s Social Protection Platform – State Council Gazette Issue No.20 Serial No.1883 (July 20, 2025). The adjustment is part of a wider government effort to boost income security and tackle inequality, especially for those in low-income or informal jobs. By raising the minimum wage, the government aims to ensure that as more jobs are created, workers are also receiving fairer pay. This move not only supports people’s livelihoods but also complements other employment support measures already in place.
Focus on Long-Term Workforce Development
The new policy encourages local governments to expand vocational training and improve public employment services, so people can pick up the skills they need for jobs in fast-growing industries. A direct move away from quick job fixes, which supports and focuses on better job-matching platforms and career guidance, especially for young people just starting out
Source: State Council Gazette Issue No.20 Serial No.1883 (July 20, 2025)
New Protections for Gig Economy Workers
On July 15, the Ministry of Human Resources the State Council of the People’s Republic of China and Social Security (MOHRSS), together with the Supreme People’s Court and other agencies, announced new guidelines for gig economy workers. This is a big step for platform workers, like delivery drivers and freelancers, who have not always had the same protections as traditional employees. The new rules bring in online tools to resolve disputes and aim to get government departments working together more closely, so it’s easier for gig workers to sort out issues around job status and benefits.
Responding to a Shifting Job Market
These changes are being implemented whilst China’s labour market is feeling the strain. Youth unemployment is still high, and some traditional industries are struggling to keep up with economic changes. But there is also a lot of demand for people in areas like AI, automation, and digital tech. To support this shift, the government is offering longer unemployment insurance and one-off hiring subsidies to businesses that take on 2025 graduates or unemployed youth.
Source: China unveils pro-employment measures for college graduates, youths
A More Strategic Approach to Employment
These policies show that the government is thinking more strategically about the labour market. It is not just about reacting to problems—it is about helping businesses and workers get ready for what is next. Whether these changes will work as planned depends on how well they are put into practice locally, but it is clear that China’s labour policy is evolving to keep up with a modern workforce.
A Perspective from Leap29
“While Labour market liberalisation can unleash economic dynamism and foster innovation, sweeping changes — such as stripping dismissal rights across the board for high earners — risk undermining employee safeguards. A more effective approach is targeted deregulation paired with strong accountability, so employers benefit from flexibility but workers retain essential protections.” — Simon Duff, Director, Leap29
