Addressing middle-aged unemployment is critical for social stability and high-quality economic development. Using data from China Family Panel Studies (CFPS), this paper systematically examines the formation mechanism and socioeconomic impact of the middle-aged unemployment crisis, and innovatively explores preventive and resolution paths from the perspective of household financial planning.

The results show that: First, middle-aged workers face a unique unemployment crisis: unemployment stigmatization and diminished future expectations drive a vicious cycle of prolonged joblessness. Second, reasonable household financial planning mitigates this crisis by reducing unemployment risks, extending employment duration, enhancing stability, and alleviating crisis severity. Mechanism testing shows that it further reduces care-related, medical, and unanticipated expenditure pressures, strengthens future expectations, and enhances resilience to external shocks, better preparing workers to navigate the crisis. Heterogeneity analysis indicates a stronger effect among non-institutional-sector workers, those without labor contracts, and those with higher family burdens, highlighting greater needs for vulnerable groups. Additionally, human capital, financial literacy, and social capital amplify the role of household financial planning in crisis prevention and mitigation.

Policy recommendations are as follows: First, establish a sound mechanism for preventing and controlling unemployment risks by enhancing employment demand surveys and statistics, building dynamic early warning systems, and implementing targeted support for key unemployed groups. Second, establish a psychological support and social inclusion system by prioritizing mental health for unemployed middle-aged individuals, providing counseling and policy support, strengthening anti-age-discrimination laws, and promoting inclusive attitudes to reduce stigma. Third, strengthen household financial capacity by popularizing public financial education, improving financial literacy, optimizing service accessibility, and enhancing the buffering effect of household financial planning via efficient resource allocation and decision-making. Fourth, advance lifelong vocational skill training by expanding continuing education, strengthening skills training for middle-aged workers, and boosting their quality and market adaptability.

This paper not only deepens the theoretical understanding of middle-aged unemployment governance from a life-cycle perspective, but also reveals the micro mechanism through which household financial planning mitigates unemployment shocks, providing actionable solutions for addressing labor market risks during demographic transition, and offering practical value for achieving sustainable economic and social development.