Tough graduate job scene in China

 This year, China expects to see the largest group of college graduates, with 10.76 million students set to leave campus. However, these graduates are entering a tough job market due to the economic uncertainties caused by the COVID-19 pandemic and domestic industrial restructuring. Sectors such as the internet, real estate, and education have faced regulatory crackdowns and market contraction, leading to employer cost-cutting and downsizing. 

This has resulted in a 4.5% decline in job openings for new graduates in Q1 2021 compared to the previous year, according to leading recruitment service provider Zhaopin.com. The employment pressure on college students is expected to continue for the next few years due in part to a structural mismatch between the qualifications of many new graduates and the job market's demands.

Data from China's Ministry of Human Resources and Social Security shows that the manufacturing industry accounts for the most significant portion of the demand for talent in China (38.7%), followed by the wholesale and retail sectors. However, new graduates are more interested in jobs in internet and communications, real estate and construction, culture and media, and finance.

Graduates are either unwilling or not eligible for employment in sectors that have the most urgent need for workers. The high-tech chipmaking and low-end manufacturing sectors have labour shortages, but many graduates are unwilling to take these jobs due to their perceived low prestige. There is also a growing trend of students seeking more stable careers in the state sector, with the number of applicants for civil servant exams increasing significantly. The Chinese government has implemented training programs, internship opportunities, and subsidies for businesses that hire college graduates to tackle this issue.

China's post Covid economy looks challenging

 
China's economy has struggled throughout 2022 due to headwinds, including the worst outbreaks of Covid-19 and a prolonged property sector crisis. As a result, China's GDP has been expanding well below target this year, with analysts and organizations such as the International Monetary Fund and the World Bank cutting their 2022 GDP growth projections to around 3%. Exports, which used to be a significant driver of China's economic recovery, have slowed or even slipped into negative territory as demand from the US, EU, and Southeast Asia has weakened. Meanwhile, China's stringent Covid controls have choked domestic consumption, with total retail sales dropping 0.1% year-on-year in the first 11 months.

China embarked on a debt-fueled infrastructure investment spree to boost the economy and rolled out measures to aid developers' financing and stimulate consumer demand in the property market. However, investor and homebuyer confidence have yet to see a significant rebound. As a result, policymakers have also turned to fiscal and monetary stimulus measures, including tax cuts, more lending, and more accessible financing conditions. Despite these efforts, consumer spending and business confidence have not been significantly boosted.

With the zero-infection policy rapidly dismantled at the end of the year, China is now pivoting to living with the virus, raising the prospect of a robust economic recovery in 2023. However, local government's fiscal woes have intensified as their land sales, and tax revenues have slumped, and the country will need to address these issues in the coming year. As China heads towards the post-Covid era, it will also need to address challenges such as structural reforms, a declining labour force, and an ageing population.