The job market imbalance in China is worsening, with a lack of job opportunities for thousands of graduating students and a shortage of factory labor due to an aging workforce. As a result, some graduates who are unable to find employment are turning to manual labor.
Liang Huaxiao, a graduate in applied maths, shared her difficulty in finding a job at one of China’s tech giants, saying, “Finding a job has been really difficult. I told my family that I’m willing to take up manual labor and my mum straight-up cried. She felt so sorry for me.”
In April, youth unemployment in the country reached a record 20.4 percent, and this summer, another 11.58 million university students are preparing to graduate.
While they will be competing for jobs in one of the world’s fastest-growing major economies, the country’s manufacturing-heavy structure does not align with the aspirations of the younger generation.
Industries popular among fresh graduates, such as tech, education, real estate, and finance, have faced regulatory crackdowns in recent years. Although some measures have been rolled back, business sentiment remains slow to recover. Private investment increased by only 0.4 percent in January-April, while state investment rose by 9.4 percent.
“China’s education raced ahead of the economy, which means that more diplomas were handed out than were needed by a manufacturing-based economy,” said Keyu Jin, author of The New China Playbook. “There’s a big mismatch between expectations and the reality of the economic circumstances,” he added.
The extent to which graduates are accepting jobs below their skill level is unclear, but the trend has been recognized by state media. State media editorials have encouraged young graduates to “roll up their sleeves.”
President Xi Jinping has repeatedly urged young people to “seek hardships” in a state media article, in which he discussed his own struggles during the Cultural Revolution.
The government has called on state-owned enterprises to hire more university graduates and expand vocational training schools to address shortages in advanced manufacturing.
Some local governments, like Shanghai, are offering employment subsidies to companies that hire 2023 graduates.
The service industries, which are at the forefront of China’s post-pandemic recovery, are offering few high-skilled positions. “Many white-collar service positions have vanished,” said Chim Lee, an analyst at the Economist Intelligence Unit. “Jobs being created are predominantly in areas not requiring higher education, such as catering and tourism,” he added.
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