Amid China’s ongoing economic struggles, unemployment remains a headache for Beijing. In this eight-part series, we examine the range of unemployment issues facing the world’s second-largest economy, from young people to “the curse of 35”, as well as gig workers and the political implications.
At the end of May, Beijing-based start-up founder Zuyi Lee posted a part-time accounting job on an online recruitment platform. Within 24 hours, a staggering 142 applicants had reached out.
Lee whittled the list down to 16 applicants, with only one failing to show up for the interview.
“For fresh graduates, the competition in job seeking is fierce,” Lee said. “It’s clear that many are in urgent need of employment.”
There are many people with general learning and knowledge, but few of them have professional skills required in various industries
It peaked at 15.3 per cent in February and March, but has since slightly eased, falling to 14.2 per cent in May.
China’s overall surveyed urban unemployment rate, meanwhile, stood at 5 per cent in May, unchanged from April.
Chu Zhaohui, a researcher at the China National Institute of Education Sciences, said the lack of demand for employment and structural unemployment were the two main unemployment issues in China.
“There are many people with general learning and knowledge, but few of them have professional skills required in various industries,” said Chu.
Xi pledged to make youth employment a top policy priority, and stressed that employment for university graduates should be the main focus.
In the middle of June, China unveiled robust initiatives, including subsidies for companies hiring college graduates and a scheme of creating at least 1 million internship positions annually for young people by the end of 2025.
In May, the Ministry of Education also conducted a “100-day sprint” initiative to enhance employment opportunities for graduates by organising company visits and bolstering internship programmes.
As of the end of May, 2,524 universities had visited companies and explored job opportunities, creating nearly 3.76 million new employment positions, according to state-owned media.
China also published a list of 19 new recognised professions at the end of May related to the digital economy, smart manufacturing and modern services, including live-streaming anchor and generative artificial intelligence system application specialist.
“If college graduates subjectively accept some new industries and positions suitable for themselves, it may ease the employment pressure,” Lee added.
They could be a guide to employment, but still need to be tested by the market, Chu stated.
Nine of the new professions have been labelled as “S”, indicating digital professions.
“Some of my classmates tried to find opportunities through the internet, such as bloggers and knowledge services. Although it was just a hobby at the beginning, some of them did succeed later,” said Maria Yeung, who graduated from a medical college in the southeastern Fujian province in June.
In the long run, we need greater openness, more open supply and demand relationships
“I know that the current job market is very competitive. If the available jobs right now do not align with my future plans and expectations, I would rather wait a bit longer,” said Rita Lin, who is entering her final year studying finance at a university in Shanghai.
“The competitive pressure of being a civil servant or getting higher academic training is no less than the pressure of other employment choices. At the same time, the salary of fresh graduates is not equal to the hard work,” Yeung said.
But according to Chu, the job market is directly related to the development of various industries, which is beyond the control of jobseekers.
“On a personal level, one can try to change their views on employment and better adapt to the needs of the real society,” added Chu.
“Integrating into the global market system is the essential solution. In the long run, we need greater openness, and more open supply and demand relationships.”