A striking feature of the jobs market in China is the 20% unemployment rate among 18 to 25-year-olds. This is well above the current rate of unemployment in China, which stands at 5%. The Chinese Labour market is particularly challenging for graduates because there are just not enough graduate-level jobs in many parts of China. 

There are examples of highly qualified graduates taking jobs as taxi drivers, film extras, delivery drivers, and serving in restaurants. "My dream job was to work in investment banking," says one graduate as he prepares to start his shift as a waiter in a restaurant in the southern city of Nanjing. The 25-year-old recently graduated with a master's degree in finance." This is the situation in China, isn't it? The moment you graduate, you become unemployed," said another graduate. A university professor said, "The job situation is challenging in mainland China, so I think a lot of young people have to really readjust their expectations." 

This year’s 11.79 million Chinese university graduates see the lack of job availability as a huge challenge. Many businesses have struggled since the pandemic, and this has reduced their recruitment plans. Recently, there have been significant job losses amongst firms in the white-collar sectors of banking and finance, law, and administration as the Chinese economy continues to struggle.  

Unemployment is a real problem for young people. Without work, they are unable to obtain the skills needed to gain a place in the labour market and access higher-paying jobs. Not working also causes mental health issues, a loss of purpose, and social isolation.  

Youth unemployment is a challenge for policymakers. Overall, unemployment is an issue for China, but targeting young people is a particular priority. The government needs to adopt a targeted supply-side approach to tackle youth unemployment.  

Source adapted: https://www.bbc.co.uk/news/articles/ce8nlpy2n1lo 

Some discussion points

1. What does the 5% unemployment rate in China mean?

2. How are demographic differences in the unemployment rate a problem when measuring unemployment in China?

3. Is there evidence of underemployment or hidden unemployment in China?

4. To what extent is a high rate of youth unemployment a problem for China?