The graph shows the number of employed people in China from 2014 to 2024. In 2024, the workforce in China amounted to around 734.4 million people. This marked an annual decrease of six million and is in line with a general downward trend since 2014. Workforce in China China’s total population has been declining since 2022 and dropped by 1.4 million annually to around 1.408 billion as of the end of 2024. This development is also reflected in the number of people in working age which has been shrinking since 2014. The labor force of China, which refers to the population aged 16 and over and capable of working, has been declining since 2016 and ranged at around 772.2 million in 2023. Out of the total number of employed people in 2023, about 470.3 million people were employed in urban areas, while 270.1 million people were working in rural areas. Distribution of the workforce The share of the workforce employed in the primary sector declined significantly from 36.7 percent in 2010 to 22.8 percent in 2023, only interrupted in 2022 by effects related to the COVID-19 pandemic. While the percentage of people employed in the primary sector decreased, the tertiary sector gained importance. As of 2023, about 29.1 percent of Chinese workers were employed in secondary and 48.1 percent in tertiary industries. The share of the workforce employed in the secondary sector increased until 2012 but decreased thereafter due to China's shift towards a service driven economy.

In 2023, China's labor force amounted to approximately 772.2 million people. The labor force in China indicated a general decreasing trend in recent years. As both the size of the population in working age and the share of the population participating in the labor market are declining, this downward trend will most likely persist in the foreseeable future. A country’s labor force is defined as the total number of employable people and incorporates both the employed and the unemployed population. Population challenges for China One of the reasons for the shrinking labor force is the Chinese one-child policy, which had been in effect for nearly 40 years, until it was revoked in 2016. The controversial policy was intended to improve people’s living standards and optimize resource distribution through controlling the size of China’s expanding population. Nonetheless, the policy also led to negative impacts on the labor market, pension system and other societal aspects. Today, China is becoming an aging society. The increase of elderly people and the lack of young people will become a big challenge for China in this century. Employment in China Despite the slowing down of economic growth, China’s unemployment rate has sustained a relatively low rate. Complete production chains and a well-educated labor force make China’s labor market one of the most attractive in the world. Working conditions and salaries in China have also improved significantly over the past years. Due to China’s leading position in terms of talent in the technology industry, the country is now attracting investment from some of the world’s leading companies in the high-tech sector.

In 2023, about ***** million people in China were estimated by the UN to be at a working age between 15 and 64 years. After a steep increase in the second half of the 20th century, the size of the working-age population reached a turning point in 2015 and figures started to decrease thereafter. Changes in the working-age population China's demographic development is characterized by a rapid change from a high fertility rate to a low one. This has caused the development of an arc shaped graph of the working age population: quickly increasing numbers before 2010, a gradual turn with a minor second peak until around 2027, and a steep decline thereafter. The expected second maximum of the graph results from the abolishment of birth control measures after 2010, which proved less successful in increasing birth figures than expected. The same turn can be seen in the number of people eligible for work, with an accelerated downturn in the years of the coronavirus pandemic, where many people left the labor force. It is very likely that the size of the labor force will rebound slightly in the upcoming years, but the extent of the rebound, which parallels the second maximum of the working age population, might be limited. China's labor market China's labor market was once defined by its abundant and cheap labor force, but competition for talent has been getting increasingly tense in recent years. This development is very likely to further intensify and extend itself into the less skilled ranks of the labor market. As the number of people who fall within the retirement age group is increasing and adding to the burden on the economy, steps to keep labor participation high are necessary. Raising the retirement age and providing incentives to stay in the labor force, are measures being implemented by Chinese government. Strategies to increase labor productivity would be ideal to mitigate the pressure on the Chinese economy, however, realizing such strategies is challenging.