Rising youth unemployment in China is creating a new working class of "rotten-tail kids," college graduates forced to accept low-paying jobs or rely on parents.
China is facing a growing crisis of youth unemployment, leading to the emergence of a new working class known as "rotten-tail kids." This term has become a popular buzzword on Chinese social media, drawing a parallel to the "rotten-tail buildings"—unfinished real estate projects that symbolize the country's economic struggles. For millions of recent college graduates, the promise of upward mobility and secure futures through education is becoming increasingly elusive.
The Alarming Unemployment Rate Among Chinese Youth
The unemployment rate for Chinese youth aged 16-24 surpassed 20% for the first time in April 2023, and it reached an all-time high of 21.3% in June 2023. In response, Chinese officials suspended the release of the data series, but the problem persists. By July 2024, the reconfigured jobless rate spiked again to 17.1%, highlighting the continued challenges facing young job seekers in China. This crisis comes as a record 11.79 million college graduates entered a labor market already depressed by the lingering impacts of COVID-19, regulatory crackdowns on key industries, and an ongoing real estate crisis.
The Harsh Realities of the Job Market
For many of these graduates, the only options available are low-paying jobs far below their qualifications or returning to their hometowns to live off their parents’ pensions. Even those with advanced degrees are not spared from the bleak job prospects. The result is a generation of "rotten-tail kids," young people who find themselves struggling to make ends meet despite years of academic achievement.
Yun Zhou, an assistant professor of sociology at the University of Michigan, notes, "For many Chinese college graduates, better job prospects, upward social mobility, and a sunnier life outlook—all things once promised by a college degree—have increasingly become elusive."
Personal Stories Highlight the Struggles
Zephyr Cao, a 27-year-old with a master’s degree from the prestigious China Foreign Affairs University, is one of these "rotten-tail kids." After failing to secure a job that matched his expectations, Cao returned to his home province of Hebei and stopped seeking full-time employment. "If I worked for three or four years after my undergraduate studies, my salary would probably be similar to what I get now with a master's degree," he lamented. Cao is now considering pursuing a PhD in the hope that his job prospects might improve in a few years.
Similarly, Amada Chen, a recent graduate from Hubei University of Chinese Medicine, quit her sales job at a state-owned enterprise after just one month due to a toxic work culture and low wages. Despite her qualifications in traditional Chinese medicine, Chen found herself stuck with offers mostly for sales or e-commerce positions. After 130 unsuccessful job applications, she is reconsidering her career path and might even turn to modeling.
Uncertain Future and Limited Opportunities
The outlook for China's youth remains uncertain. The expansion of university enrollment in the late 1990s created a large pool of educated workers, but job creation has not kept pace. In 2007, authorities expressed concern over job availability for graduates, and while the issue had receded somewhat, it has never fully disappeared. Now, with an oversupply of graduates in a slowing economy, the problem is more pressing than ever.
Shou Chen, a third-year student majoring in artificial intelligence at Beijing University of Posts and Telecommunications, is another example of the uncertain future facing China's youth. Despite her in-demand major, she has yet to secure an internship after numerous applications and remains pessimistic about her job prospects. "It may be worse," she said, noting that the competition will only increase as more students enter the field.
The Long-Term Implications
According to a study published in June by China Higher Education Research, the supply of tertiary students will continue to exceed demand from 2024 through 2037. This mismatch could exacerbate the unemployment crisis before it potentially improves as the effects of falling fertility rates reduce the number of graduates entering the workforce. The study predicts that the number of new college graduates will likely peak at around 18 million in 2034.
China's rising youth unemployment is not just an economic issue but a social one, with profound implications for the future of the country. As more young people find themselves trapped in low-paying jobs or forced to rely on their parents, the promise of education as a path to a better life is fading. The "rotten-tail kids" are a stark reminder of the growing divide between expectation and reality in China’s job market.
Source: Reuters
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