An expert said at a recent forum in Beijing that adjusting institutional mechanisms to boost economic vitality and employment quality is key to addressing the challenges of a declining birth rate and an aging population.
Cai Fang, chief expert at the National High-end Think Tank of the Chinese Academy of Social Sciences, said at the recent 24th China Economics Annual Conference that strengthening human capital development is essential.
He emphasized the need to offer skills training and vocational retraining programs for both younger and older workers, to enhance their employment capabilities and better adapt to the current labor market demands.
Cai said policymakers are expected to pay more attention to the evolution of the labor market, skill training, career guidance and enhancing the quality of employment.
Apart from the traditional financial and monetary policies, Cai suggested introducing more long-term policy tools, such as those improving education and employment services, to reduce the structural unemployment rate, and fully enhance the level and quality of employment.
Cai pointed out that China’s working-age population is showing a “U-shaped” distribution, with increasing proportions of younger and older workers respectively. Meanwhile, labor market matching efficiency follows an inverted U-shape. This contradiction has made it more difficult for both younger and older workers to get employment.
At present, China’s young workers have a high level of education, with longer years of schooling, but this extended education period often leads to a lack of work experience. Older workers, on the other hand, may have received less schooling but possess more work experience.
Cai stressed the need to promote a collaborative mechanism that combines the strengths of different age groups in the labor market. By leveraging the strengths of both younger and older workers, a complementary effect can be achieved, ultimately improving overall productivity, he said.
Dong Yilang contributed to the story.