China View: Aging Shanghai: Chinese Local government turns to Retirees as Silver Workforce.
PamelaJoeMcFarlane
Aging Shanghai: Chinese Local Government Turns To Retirees As Silver Workforce.
Retirees re-entering the workforce is a common issue that has plagued many developed countries. However, for China, a developing country, this is an emerging concern. Recently, the Shanghai government issued the "Implementation Plan for Building a Support System for Social Participation of the Elderly and Promoting Active Aging," which has sparked widespread social debate. This development indicates that, as the world's largest producer, China is beginning to address challenges related to aging and labor shortages.
As the largest economic city in China, Shanghai ranks first in the country in terms of consumption capacity and income, with a GDP of 5.67 trillion yuan in 2025, a year-on-year increase of 5.4%, higher than the national average level. However, China's declining birth rate has become a significant challenge, and the number of unemployed and aging people in Shanghai continues to rise. Understanding this contradictory social phenomenon helps to formulate appropriate responses and policies regarding the global aging issue. From 2022 until the end of 2024, the number of registered residents aged 60 and above in Shanghai reached nearly 6 million, accounting for 37.6% of the population. This makes Shanghai one of China’s cities with the most severe aging problems. It is expected that the pressure on China's social security system will grow increasingly burdensome in the future. In the face of labor shortages and significant pressure on pension expenditures, the Shanghai government encourages healthy elderly individuals to re-enter the workforce.
In August 2025, the Chinese government drafted the "Interim Provisions on the Protection of Basic Rights and Interests of Elderly Workers" to ensure the basic rights and interests of elderly workers. The regulations encourage employers to provide suitable employment positions for older workers based on their knowledge, skills, and experience.
As a "pilot city," Shanghai has the most severe aging population, and it also creates an environment for the re-employment market for the elderly. The Shanghai Municipal Civil Affairs Bureau issued the Implementation Plan for providing diverse and personalized employment positions suitable for the elderly, supporting employers in rehiring retired professionals, and exploring the inclusion of elderly employees in the scope of work injury insurance coverage. Face The Challenge Of Ensuring Labor Rights Protection.
In 2025, the "Chinese Elderly Art Troupe Shanghai Tour" artistic performance took a final bow. Wang Shichang, the head of the Chinese Elderly Art Troupe, said that the troupe has promoted the development of elderly cultural and artistic undertakings. The performance of local art groups in Shanghai was equally impressive. They polished the details with a reverence for art, infused their works with warmth through their love for life, and endowed the performances with deeper value through the spirit of "joy in old age, happiness, and well-being." However, despite the active promotion of policies to employ the elderly by the central and local governments in China, they still have to face the challenge of ensuring labor rights protection.
Addressing The Challenges Of An Aging Population Becomes The Problem.
The main difficulties faced by formerly retired, re-employed individuals in protecting their labor rights include the following aspects: First, it is very difficult for retired re-employed individuals to sign labor contracts with employers and receive the legal protection provided by these contracts. According to existing Chinese legal regulations, retirees are implicitly excluded from the definition of "workers" under labor law. Although retired, re-employed workers can be recognized as having a factual labor relationship with their employer; however, this does not constitute a formal labor contract relationship. Secondly, the risks of occupational injuries and occupational diseases faced by re-employed retirees are not included in social security. Lastly, there is a gap in effective policy intervention to address age discrimination faced by retirees re-entering the workforce, most companies clearly set age limits during recruitment, and retirees are basically excluded from formal recruitment by companies due to being over the age limit.
Will The “Silver Economy” Become A New Growth Sector?
According to the data from the China national seventh national census, the employment population in China exhibits distinct structural characteristics: workers aged 30 to 49 are the absolute mainstay of the job market, accounting for a total of 52.7% of the employed population; those under 30 make up less than 20% of the employed population, primarily corresponding to the "post-00s" and some "post-90s" groups. In this context, in recent years, calls to break the "35-year-old threshold in the workplace" and to vigorously develop "silver-haired human resources" have been growing louder.
Will The Entry Of Elderly People Into The Job Market Lead To Competition With Young People?
The answer is no. Due to the different functions of jobs, the elderly employment will not replace younger employment or influence the competition. Elderly workers often fill roles that require experience and mentorship, which are distinct from the entry-level positions typically held by younger employees. The elderly employment can thus help offset China’s shrinking workforce. China has been experiencing negative population growth since 2021, from a 0.02% to a 0.22% yearly growth rate in 2026. China's birth rate and labor force are simultaneously decreasing.
In recent years, the elderly group has already become the mainstay of offline consumption in Shanghai, contributing significantly to sectors such as retail and dining, which rely heavily on their spending power. By the end of 2025, China's population aged 60 and above will exceed 320 million, including an estimated 87 to 120 million elderly workers, primarily active in labor-intensive industries such as catering, sanitation, security, and construction. As a city that provides social welfare policies for the elderly population, the Shanghai government hopes that the elderly can re-enter the workforce to address labor shortages. Youth employment in China now tends to focus on industries where they can make quick money, such as live-streaming, rather than traditional industries that require accumulated experience.
Conclusion
The Shanghai government has introduced an "Implementation Plan for Building a Support System for the Social Participation of the Elderly to Promote the Realization of Active Aging." Defining the legal labor status of retirees re-entering the workforce is crucial. Clear guidelines should be established for their employment relationships with employers. Furthermore, laws should guarantee that retired individuals returning to work receive rights and benefits similar to other workers while employed. Lastly, establishing a national standard for re-employment systems for retirees is crucial. This will help them access rights, benefits, and job opportunities across various regions of the country.
