The COVID-19 pandemic has adversely affected the overall economic growth of countries. Governments have taken various measures to prevent the spread of the virus, resulting in a significant increase in unemployment, such as young people who are disadvantaged groups such as first-time job seekers and inexperienced fresh graduates. The concept of sustainable development has been gradually recognized by most countries as an important principle in international regulations. It has been reflected in international treaties, judicial cases, and initiatives. To alleviate the pressure of youth unemployment, China has adopted a series of policies and measures, which are consistent with the concept of sustainable development. This paper intends to focus on the current situation of China’s youth employment market and relevant laws and policies to improve it. It draws on the measures taken by other countries to deal with youth unemployment and puts forward suggestions from the perspective of sustainable development.