Surpassing 10 Million for the First Time in 2022
"Structural Imbalance Favoring Office Jobs Worsens the Problem"
Employment for Chinese university graduates is expected to become even more difficult next year. While statistical authorities have stopped releasing youth unemployment rate figures, the number of university graduates next year is projected to break the record once again.
On the 7th, Hong Kong's South China Morning Post (SCMP) reported, citing the Ministry of Education's forecast, that the number of university graduates in China next year will reach 11.79 million, an increase of 210,000 from this year. The number of graduates has been rapidly increasing since it first exceeded 10 million last year.
Mao Wipei, Associate Researcher at the China Employment Research Institute, stated, "Due to current economic uncertainties, companies will reduce hiring to cut employment costs," adding, "Young university graduates with little experience will especially be the target." Mao further explained, "The service sector is facing various headwinds, and factories are experiencing labor shortages, while young people generally prefer office jobs over blue-collar work, a structural imbalance that worsens employment issues."
China's youth unemployment rate for ages 16 to 24 reached a record high of 21.3% in June, after which the National Bureau of Statistics has suspended data disclosure to optimize and improve the survey. The market believes that the unemployment rate for this group has continued to rise since then.
Mao argued, "Universities need to build more platforms to provide graduates with the latest job information via the internet and offer career planning courses."
In this regard, Zhu Haibin, Chief China Economist at JP Morgan, recently emphasized, "In addition to strengthening the advanced and high-tech sectors, efforts must be intensified to activate the private sector to unleash the potential for new jobs," adding, "A transparent and predictable policy environment is more important than financial support." Zhu explained, "Because there have been many policy changes in recent years, more predictable and stable policies are needed."
Earlier, the Chinese Ministry of Education introduced 26 measures to promote employment and entrepreneurship for 2024 university graduates, urging local governments to prepare public sector job exams early and explore suitable job opportunities in underdeveloped areas. It also required universities to hire professional employment counselors and for faculty and staff to visit companies more frequently to assess the job market.
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