To what extent do technological advancements and Government policy interventions contribute to unemployment in China?

Abstract

This study empirically examines the impacts of technological advancements and government policy interventions on China’s unemployment during 2015–2025, using Pearson correlation analysis and multiple linear regression analysis. It identifies a highly significant positive correlation between general public expenditure as a GDP share and China’s unemployment rate, with clear reverse causality. However, national average minimum wage and R&D expenditure’s GDP share show no statistical impact on overall unemployment, due to regional wage heterogeneity, offset R&D job displacement and creation, and long R&D employment lags. Limited by national aggregated data, incomplete variable measurement and a short empirical horizon, the study still provides evidencebased insights for China’s targeted employment policies and balancing technological progress, policy regulation and employment stability.