Job Market Crisis for New Grads in China: Less Than Half Secure Employment

China's new college graduates are facing an unprecedented job market crisis, with less than half securing informal employment by mid-April this year, according to a report by Nikkei Asia, citing data from human resources company Zhaopin.

Nikkei Asia reported that only 48% of prospective graduates received job offers, a 2.4 percentage point decline from the previous year. With just two months left until graduation, more than half of job-seeking college graduates remain unemployed, a significant drop from prior years.

Prior to 2019, around 75% of new graduates received informal job offers. However, that rate dipped below 50% in spring 2022 amid Shanghai's government lockdown to contain the coronavirus, Nikkei Asia noted. Private-sector companies in tech, real estate, and cram schools, once major employers of young graduates, have slashed hiring due to regulatory crackdowns aimed at curbing market bubbles.

Additionally, other industries are downsizing—SAIC Motor, in collaboration with Volkswagen and General Motors, cut approximately 9,000 jobs between 2019 and 2023, with Dongfeng Motor shedding around 2,600 workers during the same period.

Student interest in private-sector jobs is waning, with just 13% now favoring private companies, a sharp decline from 25% in 2020, as per Zhaopin. Widespread restructuring in tech and other sectors has fueled concerns about job security.

Conversely, state-owned enterprises are becoming more appealing to job-seeking students, with preference rising to 48%. Students are increasingly pursuing civil service roles, with 77 candidates competing for each available position in 2024.

The Chinese Ministry of Education reported a record 11.79 million new graduates for the summer of 2024, up by 210,000 from the previous year.

(With inputs from agencies.)