Over the last decade, China has experienced extraordinary economic growth. Since its reformation began in 1978, China has become a world power behind only the United States, and the current administration’s vision of building out an assertive prosperous China is well underway. So why are almost 1 in 5 young adults facing unemployment?
The Chinese job market is in a downturn, and the demographic that this crisis has hit hardest is the same group earmarked to build the Chinese Dream. Many college graduates cannot find work, live with their parents, or take low-paying jobs far below their qualifications. The lack of prospects has led to frustration and disillusionment among many young people struggling to make ends meet.
Over the last few years, the world felt the full effects of the COVID-19 pandemic worldwide, and China was no exception. The virus has profoundly affected the Chinese economy, with millions losing their jobs. The official unemployment rate for 16-24-year-olds reached 19.9% in August 2022, and despite the staggering statistics, many believe the government has widely underestimated that statistic.
The government is trying to encourage businesses to create new jobs, but it is an arduous task in the current climate. These figures reflect the highest level of unemployment since 2018 and stand at almost double the British rates for this age group.
Why are we seeing these trends among young people?
First, there is a lack of white-collar jobs available, and the overwhelming amount of graduates competing for these positions has only exacerbated the situation. According to a recent survey, 54 per cent of young Chinese now attend higher education, and the number of college leavers entering the job market will reach 9.9 million this summer, which is 11 times greater than in 1998, just as the economy is slowing.
An additional factor is the zero covid lockdowns. The resulting uncertainty and disruption have slowed both recruitment and job-seeking efforts. Geopolitical tensions have also meant that many big firms have slowed hiring or let go of their staff. This is particularly acute with foreign investment – many MNCs are delaying their decisions on FDI into China until there is a clear exit strategy from zero covid policies. The EU Chamber of Commerce have highlighted that no new European Company has entered China since the start of the pandemic.
The question on many people’s minds is ‘what next?’. Whilst the situation may seem bleak, there are jobs out there, and with proper industry knowledge, companies looking to hire can find qualified candidates. So keep your eyes peeled for the other parts of this series for more information on the hiring situation.
Get in touch
For more information and an overview of the packages available, please visit https://www.kinyu.co.uk/china-desk/. You can also get in touch via info@kinyu.co.uk or give them a ring at +86 181 7315 8445.
