Young Chinese Graduates Struggle to Find Employment
By Ellen Zhang and Marius Zaharia
BEIJING/HONG KONG (Reuters) – When Peter Liu failed to land his dream job at a major Chinese internet company after graduating, he settled for a position in a state library. The lack of work has led him to spend his time studying for a new career path.
The 24-year-old, who studied TV production at a Beijing university before returning home to central Henan province, said, “It’s really hard to get work at big companies.”
Liu secured his librarian role through a government-led initiative to provide temporary work for graduates. Analysts view this as a short-term solution to maintain social stability in a declining economy with limited opportunities for young Chinese individuals.
In China, these positions are commonly referred to as “welfare jobs” and include roles as receptionists, office administrators, security guards, and community workers. While these jobs were originally intended for disadvantaged groups such as the elderly or disabled, this year has seen heightened competition for these roles from highly educated young graduates, according to various sources.
The government views employment as critical to pacifying a generation facing unprecedented pessimism. Additionally, the experience gained by graduates in these roles may benefit future employers if the economy rebounds.
The one-to-three year contracts typically pay the minimum wage, which hovers between 2,000 and 3,000 yuan ($275-$412) per month, sometimes including free meals. This amount is significantly lower than the average expected first job salary of 8,033 yuan, according to a Liepin survey.
Amid a growing youth joblessness crisis, a separate program aims to provide 1 million internships this year, courting participation from state-owned and private firms.
The Ministry of Human Resources and Social Security, which did not respond to requests for comment on the government programs or the job market, stated that youth employment was improving.
While China has relaxed some regulatory burdens on tech, property, and finance firms, state media editorials have also encouraged young graduates to consider lower skilled jobs.
Enthusiasm for the temporary roles remains high, with unclear numbers regarding the total uptake of short-term jobs and internships. Analysts believe that these roles will remain in demand amidst a slowing economy.
However, economists caution that these campaigns can only temporarily relieve economic pressure on university graduates, and youth unemployment continues to be a significant, long-term concern for Beijing.
“Youth unemployment will persist for quite a long time, at least five-to-10 years,” said Wang Jun, chief economist at Huatai Asset Management, describing temporary jobs as a “short-term fix for stability, to relieve social conflicts brought by joblessness.”
In past decades, China faced high youth unemployment, notably in the late 1970s and early 1980s, and again in the late 1990s. Today, young graduates like Chen, who beat out a dozen applicants for a secretary job at a local agriculture center in Chongqing, are grappling with the disparity between their dreams and reality.
Despite the challenges, individuals like Chen and Liu are using the downtime at their jobs to prepare for the highly competitive 2024 civil service exam, which drew a record 2.6 million applicants. If successful, they could embark on one of the most coveted career paths in China, often referred to as the “iron bowl” of financial stability.
Liu, expressing gratitude for the opportunity, never anticipated pursuing a public sector career. “I don’t want my parents to see me staying at home all day with nothing to do,” he said.
($1 = 7.2851 Chinese yuan renminbi)
(additional reporting by Beijing newsroom; Graphics by Kripa Jayaram and Ellen Zhang; Editing by Shri Navaratnam)
