China’s Unemployed Youth: Why There Aren't Jobs For New Graduates | Money Mind | Full Episode

Summary

China faces a youth unemployment crisis, with over 21% of urban youth unemployed as competition for jobs intensifies among millions of new graduates. The economic impact of the pandemic, a mismatch between graduates' expectations and available jobs, and regulatory crackdowns in key sectors exacerbate the situation. Innovative responses include young people becoming 'full-time children' supported by parents, reflecting changing attitudes toward work. Meanwhile, rural entrepreneurship is gaining traction as the government promotes revitalization efforts. However, with job opportunities limited, the challenge of aligning education with market demands remains critical for China's youth.

Takeaways

• 😀 Youth unemployment in China has reached over 21%, with one in five urban youth aged 24 and under currently out of work.
• 📈 The influx of 16 million new job seekers, including 11.6 million university graduates, is intensifying competition for limited job opportunities.
• 🔍 Structural issues such as an economic slowdown and regulatory crackdowns on key sectors are significantly impacting job availability.
• 💼 Many graduates are experiencing a mismatch between their salary expectations and the offers from employers, with starting salaries often insufficient to cover living costs.
• 🏢 Despite a tight labor market, many young people are reluctant to accept jobs that do not align with their qualifications or expectations.
• 👨‍👩‍👧 A growing trend of 'full-time children' has emerged, where young people work for their parents instead of seeking traditional employment due to economic pressures.
• 🌾 Rural areas are becoming increasingly attractive for some young people, with government efforts promoting rural revitalization and job creation.
• ⚙️ The gap between the skills acquired in university and the skills required in the job market highlights the need for better alignment in educational programs.
• 🏙️ High living costs in cities like Beijing contribute to the reluctance of graduates to accept lower-paying jobs, creating a challenging economic environment.
• 🔄 The youth unemployment crisis is expected to worsen before it improves, as millions of new graduates will enter an economy still recovering from the pandemic.

Q & A

What is the current youth unemployment rate in China?

The youth unemployment rate in China has reached a record high of over 21%, meaning that one in five urban youth under 24 is out of work.

How many new job seekers are entering the job market in China this year?

This year, there are 16 million new job seekers in China's cities, including a record number of 11.6 million university students graduating.

What factors contribute to the rising youth unemployment rate in China?

Contributing factors include economic slowdown due to COVID-19 lockdowns, regulatory crackdowns on major sectors, and a mismatch between job expectations and available positions.

What types of jobs are young graduates typically seeking?

Young graduates often seek high-end jobs in sectors like information technology, finance, and other positions that require advanced degrees, but these jobs are in short supply.

How do the salaries for fresh graduates compare to the cost of living in major cities?

Last year, the average salary for fresh graduates was just under 6,000 Renminbi (around 830 US dollars) per month, while the average apartment in Beijing costs over 6 million Renminbi, creating a significant affordability gap.

What is the trend of young people moving to rural areas?

There is a trend of young people returning to rural areas for entrepreneurship and employment, with over 10 million individuals moving back to engage in new opportunities.

What is meant by the term 'full-time children' in the context of the transcript?

The term 'full-time children' refers to young adults who work for their parents and receive a salary, as many youths are opting for this arrangement instead of traditional jobs due to the high unemployment rate.

What government initiatives are in place to support rural revitalization?

The central government is encouraging rural revitalization by promising to invest more in rural infrastructure, which aims to improve living conditions and job opportunities in the countryside.

How has the attitude of young people towards employment changed in China?

Many young graduates are no longer in a hurry to find jobs due to financial support from family assets, leading to changing expectations about employment and job satisfaction.

What are the expected long-term implications of high youth unemployment in China?

High youth unemployment is likely to have long-term implications on the economy, workforce productivity, and societal attitudes towards work, potentially leading to a generational problem.