[Correspondent Diary] China Also Faces the Era of Yi Taebaek... College Graduate Employment Crisis

Estimated 9 Million College Graduate Job Seekers, Employment Needle's Eye
Unemployment Among Over 50 Million Estimated Nongmin Gong Also a Social Issue

[Asia Economy Beijing=Special Correspondent Jo Young-shin] China is expected to face severe difficulties in employment for college graduates this year. The domestic economy is struggling to recover due to the novel coronavirus disease (COVID-19), and uncertainties stemming from the U.S.-China conflict are greater than ever. Because of this, some even say that China is facing the worst employment environment since the Cultural Revolution in 1976.

This year, about 8.7 million new college graduates will be seeking jobs. Including overseas graduates and those unemployed from the previous year, the number of job seekers is estimated to exceed 9 million.

Chinese media are expressing concerns that about 25 to 30% of college graduates this year may fail to find jobs.

Most Chinese college graduates were born in the late 1990s, a period of explosive economic growth in China. For Chinese youth who grew up during this high-growth era without major hardships, the employment crisis is as painful as COVID-19.

The problem is that many people in China attend higher education institutions. The Hong Kong South China Morning Post (SCMP) reported that the percentage of 18- to 22-year-olds attending university in China surged from 10% in 1998 to 40% in 2016. This means that 4 out of 10 young people in their early 20s are university students.

Another issue is that college graduates and recent graduates tend to prefer similar workplaces (jobs). Most graduates favor IT companies or entertainment companies that offer high salaries and strong growth potential. The supply of graduates far exceeds the demand for limited job openings.

Due to these structural problems, the term "Itaebaek" (meaning "twenties mostly unemployed") is likely to emerge in China as well. If Itaebaek becomes a reality, it could become a source of social discontent. From the Chinese government's perspective, this is an emerging force that is difficult to control.

Unemployment among nongmingong (migrant workers) is also a headache. Nongmingong are migrant laborers from rural areas working in cities. They provide cheap labor and are the foundation of China's economic growth.

However, there are no exact Chinese statistics on how many nongmingong there are or how many have lost their jobs. Estimates suggest their number ranges from 200 million to 300 million, with media speculating that over 50 million may be unemployed.

The Chinese government appears to share a sense of crisis regarding unemployment among both college graduates and nongmingong.

The government plans to maximize the use of nongmingong in flood damage recovery efforts, offer tax benefits such as land use fee exemptions to companies investing in western regions, and provide new job opportunities for nongmingong.

The employment difficulties faced by college graduates and the unemployment crisis among nongmingong are emerging as another social problem in China.