When you ask young people about the employment market in China, they frequently respond that it is harder this year.

According to interviews with six students and recent graduates conducted by CNBC, the majority of people eventually find employment, but it may not be in the field they studied or at a position that pays the highest. Many asked to remain anonymous since it may be a touchy subject in China, especially for individuals who are actively looking for work or are just beginning their careers.

One student from a prestigious university told CNBC that his peers are sending out at least 100 resumes, if not more, because the job market can be so competitive.

“Some classmates have sent out more than 200,” the student said, noting he felt fortunate having applied to 80 positions before getting three job offers. He just graduated from Shanghai Jiao Tong University and is set to start work at Huawei later this summer. Shanghai Jiao Tong University is ranked third in China, and 89th globally, according to U.S. News and World Report rankings.

In June, the jobless rate for Chinese youth aged 16 to 24 reached a new high of 21.3%.

According to Zhang Chenggang, director of a research centre for new employment forms at the Capital University of Economics and Business in Beijing, the main cause of the high youth unemployment rate is a lack of business demand.

Businesses are afraid to hire young people because they are uncertain about the future, even though they normally need training regardless of the educational system, according to Zhang.

Over the past three years, youth unemployment has been consistently high, although the general unemployment rate for city dwellers has officially remained much lower, at around 5%.

According to data from the U.S. Bureau of Labour Statistics, the unemployment rate for Americans between the ages of 16 and 24 peaked in April 2020 at 27.4% before dropping to just under 7% this year.

One class of 2023 graduates in China said that their generation was passed over for job openings because major internet companies were only interested in hiring current students, not recent graduates, for internships that would lead to full-time employment. She countered that the pandemic was still going strong when she was a student and that she was unaware of these opportunities.

“I feel like our employment [situation] is much harder,” she said in Mandarin, translated by CNBC.

The pandemic-related economic recovery in China has stalled recently. Exports have steadily decreased. The enormous real estate market has not yet recovered.

A monthly poll of primarily privately held companies conducted by graduates of Beijing’s Cheung Kong Graduate School of Business reveals a decline in hiring intentions. The CKGSB recruiting index continued to decline, dropping from 64.6 in April to 54.2 in June.

The need for personnel in the service sector has somewhat increased, according to a comparable business survey conducted by Caixin in May. But recruiting forecasts for manufacturers reached their lowest level since February 2020.

The job market is becoming more competitive, even in semiconductors, a well-known and government-supported industry.

According to Zimri Sun, who is beginning his job search this summer in preparation for graduating from his master’s programme next year, the industry is in a moment of stabilising after the “hot” period of expansion has passed. According to a CNBC translation of his Mandarin-language comments, that is the case.

At Shanghai Jiao Tong University, Sun is majoring in information and communication engineering. Despite knowing it will be difficult, he said he is optimistic he will find employment.

Many of the occupations that were once in demand among young people in China have been destroyed in several industries as a result of the pandemic and regulatory reforms, yet the number of graduates each year has increased to all-time highs. Official predictions for the class of 2023 show that there will be close to 11.6 million students.

Zhang anticipates that following the summer graduation season, the unemployment rate for young people would decline towards the end of the year.

He pointed out that more young people in China can now afford to take their time to study for college entrance examinations and find a job with a work-life balance because many families there are now more prosperous.

The circumstance can even make some people do nothing.

“Every year people say it’s hard to find a job. This year, people are more relaxed,” another 2023 graduate said, noting recent world events have demonstrated the futility of planning. That’s according to a CNBC translation of the Mandarin.

A record 7.7 million people in China took the civil service exam this year in a wider effort to find stable employment. According to official media, a record-breaking number of over 4.7 million persons enrolled for an annual postgraduate studies exam in December.

Sirui Jiang admitted that she applied for a different master’s programme as she would prefer pursue that than a job she didn’t want when she was about to graduate last year.

“These years are really challenging, especially for the newly graduated students, because we don’t have experience and it’s quite hard for us to find jobs not only in China but all over the world,” she said.

Jiang, a student who travelled to Europe for her studies, said she concentrated on making her resumes demonstrate why she was a good fit for a company, something she said students didn’t always accomplish effectively.

As a sci-tech engagement coordinator for GFI Consultancy, a Shanghai-based company specialising in the alternative protein sector, she currently works remotely from her hometown in China.

(Adapted from CNBC.com)

Categories: Economy & Finance, Entrepreneurship, HR & Organization, Strategy, Uncategorized