Can China deal with a huge graduate glut?

China faces a significant youth unemployment crisis as a record 12.7 million university graduates enter a labor market struggling with slowing economic growth. While the government targets 4.5 to 5% GDP growth, this rate fails to generate sufficient jobs to absorb the record number of new entrants. Unlike the 2008 global financial crisis, which triggered immediate, desperate economic intervention, the current situation is compounded by the rise of AI, which threatens to replace entry-level roles. Experts note that while state-owned enterprises are being pushed to stabilize hiring, many young people are increasingly turning to flexible, gig-based, or "one-person company" models. This shift reflects a broader global trend where technology reshapes career paths, forcing graduates to adapt by combining traditional skills with AI proficiency to remain competitive in a rapidly evolving economy.