China faces a structural employment crisis with 12.7 million graduates entering the market in 2026—a historic peak. AI adoption, backed by aggressive government support, is rapidly displacing entry-level positions that have traditionally absorbed new talent. Youth unemployment (16–24 age group) already stands at 17.9%, and job openings haven't kept pace with graduate supply. The convergence of economic weakness and AI-driven disruption creates dual pressures on new entrants, making this a politically sensitive issue for Beijing given social stability concerns.