10.78 million college graduates this summer are predicted to make the problem worse. Young professionals with education frequently favor joining large IT companies over the industrial sector. The percentage of young unemployment in China increased to 18.4%, the highest level since 2018.
China’s Gen Zs, who were born and raised during the country’s golden age of economic development, are confronted with a job market that is contracting as a result of the weakest economic growth in decades. The World Bank predicted that due to protracted pandemic-related lockdowns that occurred in Shanghai and Beijing between March and May, China’s economic growth will decelerate to 4.3 percent in 2022, which is 0.8 percent less than its initial prediction in December.
According to China’s National Bureau of Statistics, the jobless rate for young people aged 16 to 24 reached 18.4% in May. Caixin, a news outlet located in Beijing, claims that this is the highest reported rate since the data was first released in January 2018. According to a June 2 announcement by China’s Ministry of Education, the number is anticipated to rise when 10.78 million university students graduate this summer.
According to Rockee Zhang, general director for Greater China at recruiting agency Randstad, the country’s entry-level employment market is worse than it was during the 2008 global financial crisis, with the number of new positions declining by 20 to 30 percent from 2021.
There are many industrial opportunities available in China, but educated graduates lack the motivation or training to fill them. Instead, a lot of young people looking for work are eager to join major IT companies: An April survey from the China-based talent recruiter Tongdao Liepin Group revealed a 19.67 percent surge in job applications from recent grads for major IT companies.
According to CNN, China is enticing graduates to start enterprises in villages by providing tax benefits and loans in an effort to reduce young unemployment. Similar advantages will also be provided to small enterprises in rural regions that employ graduates.
The government plan, according to some graduates, is similar to Mao Zedong’s “Up to the Mountains and Down to the Countryside Movement” campaign of the 1960s, which involved moving urban youngsters to rural regions where they squandered their prime years studying agriculture from villagers.