A rising trend of unemployment in China has left millions of college graduates struggling to find work, forcing some to settle for low-paying jobs or rely on their parents’ pensions. This has created a new working class known as “rotten-tail kids,” a term that has gained traction on social media and draws parallels to the issue of unfinished housing structures. The country’s labour market, affected by disruptions from COVID-19 and regulatory crackdowns in various sectors, has led to a record number of graduates seeking jobs.
The jobless rate for Chinese youth aged 16-24 surpassed 20% for the first time in April last year, prompting officials to suspend the data series to reassess data collection methods. Even after the reconfiguration, youth unemployment remains a significant challenge, with the jobless rate hitting a high of 17.1% in July of 2024. With 11.79 million college students graduating this summer, the struggling economy is further burdened by a real estate crisis.
President Xi Jinping has highlighted the importance of creating job opportunities for young people, and the government has implemented initiatives such as job fairs and supportive business policies to aid in hiring efforts. However, many college graduates are finding it increasingly difficult to secure quality employment, despite their qualifications. Some have returned to their hometowns to rely on their parents’ retirement pensions, while others are considering pursuing further education as a means of improving their prospects.
Individuals like Zephyr Cao, who holds a master’s degree, have faced difficulty in finding suitable work that aligns with their education. Cao has questioned the value of his advanced degree after realizing that he could have achieved a similar salary with just an undergraduate qualification. Similarly, recent graduate Amada Chen quit her sales job due to toxic work culture and unrealistic expectations, prompting her to reconsider her career path and potentially explore opportunities in modelling.
Uncertainty looms over the job market for college graduates, with the supply of tertiary students surpassing demand in the coming years. Despite efforts to produce a more educated workforce, concerns over job availability have persisted since 2007. Even students like Shou Chen, who specialize in sectors with high market demand like artificial intelligence, struggle to secure internships and remain pessimistic about their job prospects. A study published in June suggests that the supply of new college graduates will peak around 2034, emphasizing the looming challenges for young job seekers in China’s competitive market.
