The youth unemployment rate in China has escalated to worrying heights, giving rise to a disenchanted generation referred to as “rotten-tail kids.” These individuals, grappling with few job opportunities, frequently find themselves taking on low-wage positions, depending on support from their parents, or exiting the labor force entirely. With China’s economy, valued at $19 trillion, showing indicators of a downturn, both consumers and enterprises are becoming more pessimistic. Despite governmental attempts to stimulate consumption and investment, including interest rate reductions, these strategies have shown little effect on economic growth.
Recent statistics point to a decline in domestic demand, a crucial component of economic expansion. The situation in the job market for recent graduates is particularly tough. As of June 2023, the youth unemployment rate for individuals between 16 and 24 reached 21.3%, prompting officials to temporarily halt the release of this data.
Even after methodological adjustments, the unemployment rate among young people, excluding students, increased to 17.1% in July, highlighting employers’ ongoing hesitance to hire amid stagnant economic conditions. The rising jobless numbers have plunged millions of college graduates into challenging situations, where many are compelled to accept meager salaries or rely on familial assistance.
Efforts by the government to generate additional employment opportunities have yet to yield significant results, fostering widespread negativity among job seekers. The current crisis in the job market has also given rise to a surge in scams targeting vulnerable individuals.
The Employment Challenge for Chinese Youth
In a striking incident, a 19-year-old with an intellectual disability was tricked into undergoing breast enhancement surgery. He was falsely assured that this procedure would guarantee him a position at a cosmetic clinic in Wuhan. The scammers persuaded him to take out a loan for 30,000 yuan ($4,180) to fund the surgery, causing public outrage throughout China. This situation is undermining the traditional social agreement in the country, where higher education used to be regarded as a pathway to stable jobs and social advancement.
A number of graduates, even those from elite universities, discover that their degrees do not guarantee employment stability. According to Yun Zhou, an assistant professor of sociology at the University of Michigan, the level of despair among the youth is rising. “For many Chinese college graduates, the expectations of improved job prospects and upward mobility are rapidly fading,” Zhou explained.
Zephyr Cao, who earned a master’s degree from China Foreign Affairs University, and Amanda Chen, a recent alumna from Hubei University of Chinese Medicine, both voice their disheartenment regarding the job market. Cao has ceased pursuing full-time positions after receiving disappointing salary offers, while Chen left her sales job after just one month due to a hostile workplace atmosphere. Liu Aihua, a spokesperson for the national statistics bureau, acknowledges the mounting difficulties facing job seekers.
“Certain key demographics continue to experience challenges in securing employment,” Liu stated, referring to data that showed China’s overall unemployment rate climbed to a four-month peak in July. The sense of disillusionment and frustration felt by young Chinese individuals extends beyond those with lower-tier degrees or less renowned backgrounds. This is a pervasive problem that affects graduates from esteemed institutions too, posing significant concerns for China’s long-term economic and social stability.
