context: According to the National Bureau of Statistics, the unemployment rate for urban workers aged 16–24, excluding students, reached 18.8 percent in August, a rise of 1.7 percentage points from the previous month. This marks the second consecutive monthly increase and the highest rate so far this year. Although Beijing is taking action in boosting employment, the civil service and public sector recruitment only account for six percent of the 2024 graduate cohort.
Unemployment challenges persist in
- overall number of jobs
- structural composition for university graduates
- intense competition for quality roles
- dual issues of ‘difficulty finding employment’ and ‘difficulty recruiting needed skilled workers’
In the new cycle of technology, industry and economic development, youth employment is shifting onto a new path
- demand side
- sectors that once drove growth, such as the internet, education and real estate, have shifted to more strategic industries like new energy vehicles, semiconductors and carbon neutrality
- capacity to absorb new graduates is uncertain
- many companies have moved from aggressive expansion to cost-efficiency
- more selective hiring processes and higher work demands
- SMEs hires usually provide 80 percent of employment opportunities
- lack of hiring during economic downturn
- sectors that once drove growth, such as the internet, education and real estate, have shifted to more strategic industries like new energy vehicles, semiconductors and carbon neutrality
- supply side
- younger generation
- better supported by family finances
- beyond salaries, dignity and stability have become important factors
- values quality of employment over simply having a job
- prefer to delay or slow their entry into the workforce when opportunities are few
- younger generation
- employment quality
- increasingly competitive market with stricter hiring practices
- mismatch between job seeker expectations and employer demands is growing
- a widening divide in job preferences between state-owned enterprises, private firms, large companies and SMEs
- polarised job market
- higher education widespread and average qualifications risen
- opportunities concentrated in low- and high-skill roles
- many highly educated job seekers find themselves overqualified for some roles yet underqualified for others
Experts estimate that, with the current trend of university enrolment expansion, the annual influx of over ten million graduates will continue for at least the next five years, signalling a potentially longer-than-expected period of employment difficulties.
The 2024 graduate employability survey report by Zhaopin reveals that the proportion of 2024 graduates opting for delayed employment and freelance work. The number increased from 18.9 percent and 13.2 percent in 2023 to 19.1 percent and 13.7 percent in 2024.
Fang Changchun 方长春 Nanjing University’s School of Sociology professor and Employment Quality Research Centre director warns of
- rapid expansion of low-skill, low-entry barrier jobs
- may ease employment pressure in the short term
- leaves workers in ‘low-skill’ or even ‘deskilling’ situations
- influx of young workers into low-skill fields
- no skill development or career progression
- they risk being pushed out of the labour market
According to research by Ding Shouhai 丁守海 and Ji Chengji 冀承基 from Renmin University of China
- the average monthly working hours for young workers aged 16–24 reach 251.9 hours
- participation rates in social insurance schemes, such as pensions, unemployment, maternity and housing provident funds, are all below 50 percent
- compared to other age groups, the overall job quality for this cohort is lower
- lower wages
- longer hours
- greater labour intensity
- lower social insurance coverage
- lower job satisfaction