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"The employment situation of college graduates remains grave," he told a video conference held by the State Council, the Cabinet.
More than 6 million college students were leaving school in just three months and the employment rate was generally lower than previous years, Zhang said without elaborating.
China has 6.11 million college students due to graduate this year, and 1 million from last year are still looking for jobs, according to the Ministry of Human Resources and Social Security.
Graduates are having a hard time finding jobs this year as posts are being axed due to the economic slowdown.
Zhang urged government organs, government-sponsored institutions, and state-owned enterprises to hire as many people as last year, and small and medium-sized and private companies to employ college graduates.
The State Council unveiled in February a series of measures to boost employment of college graduates, calling on them to be more flexible.
The measures included encouraging graduates to work in rural areas, in grassroots urban communities, and in smaller enterprises, asking research institutions to recruit graduates, and stepping up support for graduates starting up their own businesses.
Zhang asked local government departments to work out detailed and feasible measures and make efforts to publicize the measures this month.
Government departments and higher learning institutions should provide comprehensive services to graduates by offering advice, giving aid to the poor, and maintaining a sound employment market, he said.