Reports from abroad indicate that 12 million university graduates are expected to enter the job market this summer in China. This is the highest number ever, and concerns are rising that the employment environment for graduates may worsen as corporations reduce hiring in the midst of a prolonged youth unemployment issue and increasing global economic uncertainty due to the impact of the tariff war.
According to the South China Morning Post (SCMP) on the 30th (local time), a total of 12.22 million new graduates will enter the job market in mainland China this summer. With the job market frozen, the forecast is that unemployment rates will soar as the largest number of graduates ever makes their way into the workforce.
Youth unemployment in China began to surge amid the COVID-19 pandemic, with sluggish domestic demand and a stagnant real estate market preventing recovery. The youth unemployment rate for those aged 16 to 24 in urban areas in China reached 15.8% in April. Although it is a slight drop from the previous month (16.5%), it remains at a high level.
State-owned banks, which are considered relatively stable jobs, have drastically reduced new hiring this year. Agricultural Bank of China plans to hire 4,530, Industrial and Commercial Bank of China 4,506, and China Construction Bank 3,567, which represents a decrease of 34% to 69% compared to last year.
Chen Li, an analyst at the public policy consulting firm Unbound, noted, "The job market this summer will be in worse condition than last year," and he added, "Most graduates are flocking to traditional industries that are rapidly being replaced by artificial intelligence (AI)." He warned that prolonged employment difficulties could lead to a decline in the living standards of young people, which may result in increased anxiety and depression, deepening family conflicts, and threats to social stability.