Rising unemployment in China is impacting millions of college graduates, forcing them to accept low-paying jobs or rely on their parents’ pensions. This has created a new working class known as “rotten-tail kids”, drawing parallels to the housing crisis in China. The jobless rate for young people aged 16-24 has been above 20%, with some graduates struggling to find work in a depressed job market.
President Xi Jinping has emphasized the importance of finding jobs for young people, and the government has implemented measures such as job fairs and supportive business policies to boost hiring. Despite these efforts, many college graduates are facing limited job prospects and are struggling to secure employment. Some have turned to their parents’ pensions for financial support, while others have returned to their hometowns to rely on their families.
Even those with post-graduate degrees are finding it difficult to secure employment in the current economy. Some graduates are questioning the value of their education as they struggle to find jobs that match their qualifications. Some have resorted to lowering their expectations for top-paying jobs, or have considered furthering their education in hopes of improving their job prospects in the future.
Joblessness among college graduates is not a new issue in China, with authorities expressing concerns about job availability as far back as 2007. Despite efforts to expand university enrolment to produce a better educated workforce, the supply of graduates has continued to exceed job opportunities. The outlook remains uncertain, even in fields like artificial intelligence where there is a high demand for skilled workers.
The supply of tertiary students is projected to exceed demand from 2024 through 2037, according to a study published in June by China Higher Education Research. This means that new college graduates will continue to face challenges in finding employment in the coming years. The effects of falling fertility rates are also expected to narrow the gap between demand and supply of graduates in the future.
Overall, the current job market in China is challenging for college graduates, with many facing limited job prospects and struggling to find work that matches their qualifications. The government has implemented measures to support young people in finding jobs, but the outlook remains uncertain. Some graduates are questioning the value of their education, while others are considering further education or changing career paths to improve their job prospects in the future.
