Record numbers of Chinese graduates enter worst job market in decades

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A cohort of graduates larger than the entire population of Portugal is about to enter one of China’s worst job markets in decades at a time when youth unemployment is already more than three times China’s overall joblessness rate, at a record 18.4%.

Jenny Bai was among 10 high-performing computer science students from different Chinese universities selected by a Beijing-based Internet firm for a job upon graduation, following four rounds of arduous interviews.

China’s Covid restrictions have battered an economy already slowing due to a property market downturn, geopolitical worries and regulatory crackdowns on tech, education, and other sectors.Struggling to find jobs goes against what educated young people have come to expect after decades of breakneck growth, and is awkward for China’s stability-obsessed Communist Party, especially in a year when President Xi Jinping is expected to secure a precedent-breaking third leadership term.

Rockee Zhang, Managing Director for Greater China at recruitment firm Randstad, says China’s entry-level jobs market was worse even than during the 2008-09 global financial crisis, estimating new jobs falling 20-30% from last year. A regulatory crackdown prompted many of China’s tech giants including Tencent and Alibaba to make massive job cuts. A combined total of tens of thousands have lost their jobs in the sector this year, five tech industry sources told Reuters. Job cuts varied between China’s roughly 10 biggest tech companies varied but averaged at about 10%, according to a report published in April by Shanghai-based Talent Assessment and Management Consulting group NormStar.

“Internet companies have cut tonnes of jobs,” said Julia Zhu of recruitment firm Robert Walters. “If they have the financial resources to bring people in they are now opting for more experienced candidates rather than fresh graduates.” Vicente Yu graduated in 2021 but has been unemployed since losing his job at a media company late last year. His savings will cover another month or two of rent and basic expenses in the southern city of Guangzhou.

 

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