12 Million University Graduates Flood China... Successive Job Market Stabilization Measures Announced

Record Number of University Graduates in China This Summer
Concerns Grow Amid Economic Slowdown and Job Cuts

As the number of university graduates in China is expected to reach 12.22 million this summer, concerns over employment difficulties are growing. In response, the Chinese government has announced additional measures to stabilize the job market.

According to state media outlets such as China Central Television (CCTV) and Xinhua News Agency on July 10 (local time), the General Office of the State Council announced new employment stabilization policies the previous day. These include expanding unemployment insurance subsidies and strengthening support for youth employment.

Authorities first raised the unemployment insurance refund rate for companies. For small and medium-sized enterprises, the refund rate was increased from 60% to 90% of the unemployment insurance premiums paid in the previous year. For large enterprises, the rate was raised from 30% to 50%. In addition, companies experiencing management difficulties will be allowed to defer payments for pension and unemployment insurance, among others.

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The measures also include a one-time payment of up to 1,500 yuan (approximately 290,000 won) per person to companies that hire unemployed youth aged 16 to 24 and pay unemployment insurance and other premiums for at least three months. Other support measures include expanding special loans and improving loan accessibility, as well as increasing vocational education for unemployed youth and migrant workers. Chinese authorities emphasized that "local governments must bear political responsibility for employment stabilization and related efforts."

Meanwhile, China continues to face a severe youth employment crisis. As of May, the unemployment rate for those aged 16 to 24 (excluding students) stood at a high level of 14.9%, while the rate for those aged 25 to 29 (excluding students) was 7.0%. Ongoing uncertainty due to U.S.-China trade tensions and continued economic slowdown have led to an atmosphere in which companies in China are reportedly reducing hiring or cutting wages.

Furthermore, with this summer's university graduates expected to reach a record high of 12.22 million?an increase of 430,000 compared to the previous year?there are concerns that the influx of these graduates into the job market will inevitably push the unemployment rate higher. Accordingly, Chinese authorities plan to continue implementing policies to expand employment opportunities for university graduates, such as holding job fairs and providing financial support.