China's thousands of state-owned enterprises, local governments and public institutions are expanding hiring as a record number of students graduate into a job market left reeling by the COVID-19 pandemic.

Around 8.7 million Chinese students are graduating this year, almost half a million more than last year, heading into an uncertain future as private firms rein in recruitment.

Job stability for the young is a long-standing political concern in China. President Xi Jinping, who has previously warned that struggling graduates could "turn into negative energy," is urging more hiring.