The slowing Chinese economy is fueling employment concerns especially among young people. University graduates are struggling to find work and many have set their sights on jobs with the government or at state-owned companies.
The best and brightest want stability — and that means they are set to become cogs in the wheel of the powerful one-party Communist system.
Sudden dismissal
Han Shuang, 30, has a degree from a prestigious technical university in Dalian, and is fluent in both English and Japanese. She worked for a Chinese company for six years before accepting a position at an American telecommunications company.
She was in charge of technical support for Japanese firms. It was a job that Han thought would advance her career, until she was suddenly told in February that she was being dismissed.
Her employer downsized its operation in China due to the slowing economy. Roughly one-third of Han’s department was let go.
“I suddenly lost my job, and I really panicked,” she says. “For the younger generation, there is definitely enormous pressure to find jobs. I am worried that I am not as young or competitive as university students.”
Stability ‘within the system’
One young worker, 31, who asked to remain anonymous, says he is finished with the uncertainty of a corporate career. He’s decided to resign from the tech company where he works and use up his paid leave.
The man grew up in a regional city and after graduating from one of China’s most prestigious universities, found a job that put his language skills to good use. But now the tech industry is experiencing a downturn, he feels like he could be fired any day.
“I want to be ‘within the system’,” he explains. “This situation where you don’t know when you’ll be laid off is not ideal. At the very least, I want to be able to control the path I take.
“When I graduated from university, private companies were very dynamic, and everyone was looking for jobs with high salaries. The idea of joining ‘the system’ was unthinkable. Salaries were so low that they were referred to using an idiomatic phrase meaning ‘death wages,'” he recalls.
“But now we can’t say that. Stability is the most important thing. In a management position like mine, it is difficult to establish that you are valuable. That’s why I’m in a hurry.”
Stiff competition
Government jobs used to be unpopular. Now, they are extremely difficult to get. The number of applicants for China’s national public-service exam has jumped to 3.4 million this year — nearly 2.5 times more than before the coronavirus pandemic.
On average, there are 86 applicants for every position. For one of the most coveted roles, the ratio is a staggering 16,000 to 1. Chinese media have called it “the fiercest competition in history.”
A survey conducted last year by a private-employment agency in China found more than 70% of university students seeking employment wanted to work for the government or state-owned companies, while only 12.5% were seeking jobs with private companies.
A glut of graduates
More than 12 million people are expected to graduate from universities this year — a record number. But graduates struggle to find careers in relevant fields. The intensity of the job hunt is reflected in high youth unemployment.
China’s National Bureau of Statistics has been releasing youth unemployment rates in their current format since 2018. From around 10% at that time, the rate more than doubled to 21.3% in June 2023, the worst on record.
The bureau stopped releasing unemployment rates soon afterwards, saying the figures did not accurately reflect the situation. Six months after publication resumed in 2023, the youth unemployment rate was 14.9%. The figure for January shows youth unemployment remains high, at 16.1%.
A young man at a job fair in Beijing says it is difficult to find a suitable career. Another says he is seeking a job relevant to his expertise but is finding that to be a difficult task as many companies struggle or go bankrupt.
Loyalty to the Communist Party
Against this background, people are looking for all the help they can get to clinch stable jobs within the Communist Party system. Private cram schools that offer assistance about how to pass the entrance exams are thriving.
In early February, with the local government-interview exam just a week away, one school held a 10-day study camp for around 20 students at a hotel in suburban Shanghai.
Tables were piled high with mock interview questions and model answers as students pored over the documents through the night.
According to Pan Huiting, a teacher who runs the cram school, the key is to understand the policies of the Chinese Communist Party and affirm them while also finding a way to express personal opinion.
For example, in regard to a policy to shift economic growth to domestic demand, applicants need to refer to President Xi Jinping’s words, affirming that “stable, high-quality growth” is the key point, and be able to explain what measures are required.
Needless to say, absolute loyalty to the Communist Party is a must, as is gratitude to the people.
Something the teacher tells her students is: “Only when talented people like you enter the system will there be greater hope for the future of the nation…that’s why your current efforts are worthwhile.”
Settling for a compromise
One 25-year-old man who took part in the study camp and wished to remain anonymous has a master’s degree and originally hoped to work in real estate and garner a high salary. But due to China’s prolonged real estate slump, he gave up on the idea.
“Public servants have a certain social status. I think it is a relatively good choice for me,” he says. “It’s okay if I have a decent life and reasonable income.”
Young graduates and others who are adapting their career paths are responding to a changing corporate environment. The motivation for taking a job in government or a state-owned enterprise is often more about the pursuit of stability than any other consideration.
