Chinese graduates face toughest job market in years as unemployment soars - World News Network

Beijing [China], July 17 (ANI): Newly graduated college graduates in China are facing a very tough challenge in the job market, as less than half of them have secured informal jobs by mid-April this year, reported Nikkei Asia, citing human resources company Zhaopin.
The report stated that only 48 per cent of prospective graduates received job offers, marking a 2.4 percentage point decline from the previous year.
With only two months left of graduation, more than half of the job-seeking college graduate students are yet to secure employment.
The situation marks a significant decline from previous years.
Until 2019, around 75 per cent of new graduates received informal job offers. However, this rate fell below 50 per cent in spring 2022 due to the government lockdown in Shanghai, which aimed to control the spread of the coronavirus, according to Nikkei Asia.
As per the report, private-sector companies, especially in the tech, real estate, and cram school industries, have reduced their hiring. These sectors, which were once major sources of employment for young graduates, have been hit by government crackdowns intended to curb oligopolistic behaviour and diffuse market bubbles. As profits in these industries declined, companies cut back on hiring.
Moreover, other industries are also experiencing downsizing. SAIC Motor, in partnership with Volkswagen and General Motors, reduced its workforce by approximately 9,000 people between 2019 and 2023.
Dongfeng Motor also shed about 2,600 workers during the same period, reflecting a broader trend of workforce reductions.
There is a growing reluctance among students to pursue private-sector jobs. According to Zhaopin, only 13 per cent of job-seeking students now prefer private companies, a sharp decline from 25 per cent in 2020.
Many workers in their 30s in the tech sector and other industries have faced restructuring, leading to persistent concerns about job security.
On the other hand, state-owned companies are becoming increasingly attractive to job-seeking students.
Notably, 48 per cent of students now prefer state-owned companies, a percentage that continues to rise, as reported by Nikkei Asia.
In pursuit of job stability, a growing number of students are taking civil service exams, with an average of 77 candidates competing for each available position in 2024.
The job market has become even more competitive with the rising number of new college graduates, driven by an increased emphasis on advanced degrees.
The reported stated citing Chinese Ministry of Education, reported that the number of new graduates in the summer of 2024 hit a record of 11.79 million, an increase of 210,000 from the previous year. (ANI)

Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News