China’s New Graduates Struggle to Find Jobs in 2024
In Beijing, China, newly graduated college students are having a hard time finding jobs. By mid-April this year, less than half of them had secured informal jobs, according to a report by human resources company Zhaopin. Only 48% of prospective graduates received job offers, which is a 2.4% drop from the previous year. With just two months left until graduation, more than half of the job-seeking students are still without employment.
This situation is a significant decline from previous years. Until 2019, about 75% of new graduates received job offers. However, this rate fell below 50% in spring 2022 due to government lockdowns in Shanghai to control the spread of the coronavirus.
Private-sector companies, especially in tech, real estate, and cram school industries, have reduced their hiring due to government crackdowns aimed at curbing oligopolistic behavior and market bubbles. As profits in these industries declined, companies cut back on hiring. Other industries are also downsizing. For example, SAIC Motor, in partnership with Volkswagen and General Motors, reduced its workforce by about 9,000 people between 2019 and 2023. Dongfeng Motor also cut about 2,600 workers during the same period.
There is a growing reluctance among students to pursue private-sector jobs. Only 13% of job-seeking students now prefer private companies, down from 25% in 2020. Many workers in their 30s in the tech sector and other industries have faced restructuring, leading to concerns about job security.
On the other hand, state-owned companies are becoming more attractive to job-seeking students. Now, 48% of students prefer state-owned companies, and this percentage is rising. Many students are also taking civil service exams, with an average of 77 candidates competing for each available position in 2024.
The job market has become even more competitive with the increasing number of new college graduates. The Chinese Ministry of Education reported that the number of new graduates in the summer of 2024 hit a record of 11.79 million, an increase of 210,000 from the previous year.
Doubts Revealed
Graduates -: Graduates are students who have completed their college or university education and have received their degrees.
Informal jobs -: Informal jobs are work positions that are not officially registered with the government and often do not provide benefits like health insurance or job security.
Private-sector -: The private sector includes businesses and industries that are not owned or operated by the government. Examples include tech companies, real estate firms, and private schools.
State-owned companies -: State-owned companies are businesses that are owned and operated by the government. They often provide more job security and benefits compared to private companies.
Civil service jobs -: Civil service jobs are positions within the government, such as working for government offices, public schools, or other public services.
Tech industry -: The tech industry includes companies that work with technology, such as making software, computers, or other electronic devices.
Real estate industry -: The real estate industry involves buying, selling, and renting properties like houses, apartments, and office buildings.
Cram schools -: Cram schools are special schools where students go to study extra hard, often to prepare for important exams.
11.79 million -: 11.79 million is a very large number, almost 1.2 crore, which shows how many students graduated in China in 2024, making it very competitive to find jobs.