China's Youth Unemployment At Record Highs: Meet The Jobless Graduates | Insight | Full Episode

CNA Insider

5 Sept 202346:09

EducationalLearning

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TLDRThe documentary sheds light on China's alarming youth unemployment crisis, with a record 21.3% urban youth unemployment rate. Despite China's post-COVID economic reopening, the expected job market rebound did not materialize, doubling youth unemployment rates since 2019. The narrative follows the personal struggles of graduates facing a grim job market, exacerbated by 'degree inflation' and a mismatch between education and available jobs. It delves into the government's efforts to address this issue, such as subsidies for hiring youths and encouraging work in rural areas, while exploring the broader economic and social implications of this burgeoning crisis.

Takeaways

📚 China's urban youth unemployment hit a record-breaking 21.3% in June, with expectations of a further increase.
📈 The post-COVID economic recovery in China has been weaker compared to other countries, adversely affecting youth employment opportunities.
🔥 Youth unemployment doubled to 21.3% from about 10% in 2019, following the end of zero-COVID policies and economic reopening.
🤞 Degree inflation has escalated, with employers increasingly demanding master's degrees for jobs that previously required less education.
🛠 China's shrinking population raises concerns about a labor shortage, yet youth unemployment remains high.
📊 Youth unemployment affects social and political stability, with historical precedents highlighting the risks of high youth joblessness.
👨‍🎓 The government has halted the release of youth unemployment data amidst rising numbers and economic concerns.
💻 Skills mismatch and drastic changes in the economy have led to job cuts in key industries, further complicating the employment landscape.
📦 Xiaomi, a graduate facing job search challenges, became a symbol of the struggle, with his story going viral online.
🛡️ Government efforts to tackle youth unemployment include subsidies for employers, encouraging internships, and promoting rural employment opportunities.

Q & A

What is the current youth unemployment rate in China?
-According to the transcript, the urban youth unemployment rate in China reached a record-breaking 21.3% in June 2022, and economists expected it to further increase as the new graduating cohort joined the workforce.
Why is the youth unemployment rate in China so high compared to other countries?
-The transcript cites several reasons, including the weaker post-COVID recovery in China, the government's crackdown on certain industries like private tutoring and tech giants, and the skills mismatch between what graduates have studied and the current job market demands.
What are some of the consequences of high youth unemployment in China?
-The transcript mentions that high youth unemployment poses a threat to social and political stability, as it was one of the factors contributing to the Arab Spring. It also affects consumption levels, leads to skills depreciation, and is costly to society due to its links with drug use, crime, and other social issues.
What measures has the Chinese government taken to address the youth unemployment issue?
-The government has launched campaigns to achieve zero unemployment, provided subsidies for employers to hire youth, ordered state enterprises to offer more internships, and even encouraged youth to find jobs in rural areas.
How does the current situation compare to the "sent-down youth" movement during the Cultural Revolution?
-While the government is encouraging some youth to seek opportunities in rural areas, the transcript notes that this is different from the forced "sent-down" movement during the Cultural Revolution, which resulted in anger and further unemployment when the youth returned to cities.
What alternative paths are some unemployed youth pursuing?
-The transcript mentions examples like live streaming, hunting for discounts online, and taking jobs in unconventional industries like salted duck production in rural areas.
How does the transcript portray the expectations and attitudes of some unemployed youth?
-It highlights instances where some youth have high expectations for pay and comfort, are unwilling to take certain manual labor jobs, and have adopted slogans like "being pampered by mommy and daddy" instead of being "unwanted by society."
What role does education play in the youth unemployment issue in China?
-The transcript notes that China has rapidly expanded tertiary education, leading to a mismatch between the highly educated workforce and the available job opportunities. Employers are also requiring higher degrees, even for entry-level positions.
How does the youth unemployment situation in China compare to other countries in terms of income levels?
-The transcript states that China's youth unemployment rate of 21.3% is quite high given its level of income as a higher middle-income country, with a per capita income of almost $11,000.
What broader economic factors are contributing to the youth unemployment issue in China?
-The transcript cites the slowing Chinese economy, the property market bust, declining exports due to Western recessions and de-risking from China, and the implosion of the housing market as factors that have led to job losses and fewer opportunities for youth.

Outlines

00:00

📉 China's Youth Unemployment Crisis

This segment highlights the unemployment issue among Chinese youths post-pandemic, with a record 21.3% urban youth unemployment rate in June. Despite the highest number of tertiary education graduates, job opportunities remain scarce, leading to widespread frustration and despair among the youth. The narrative follows a graduate, Xiaomi, whose viral video underscores the dire job market. The government's decision to halt the release of youth unemployment data amidst this crisis is also noted, indicating the severity of the issue.

05:06

📚 Degree Inflation and Job Market Challenges

The focus shifts to the escalating youth unemployment rate, which doubled to 21.3% post-pandemic, defying expectations of a labor shortage. This paragraph discusses the peculiar plight of the 'zero COVID' policy-affected youth, predominantly employed in the vulnerable service sector. It also covers the alarming degree inflation, where even basic office jobs demand master's degrees, exacerbating the employment struggle amidst a surging number of graduates competing for scant vacancies.

10:15

🏗️ Economic Shifts and Skills Mismatch

This section delves into the skills mismatch and economic transitions in China, where drastic governmental policy shifts have led to massive job cuts in sectors like property development, education, and tech. The narrative of a civil engineering student, Xiaohe, exemplifies the personal impact of these shifts. Despite a shrinking population hinting at a labor shortage, the youth unemployment paradox persists, fueled by a mismatch between educational qualifications and market demands.

15:18

🎓 Overeducation and the Struggle for Employment

The narrative examines the overeducation dilemma where China's massive expansion in tertiary education has led to a workforce more educated than the jobs available. This mismatch results in a tough job market for graduates like Ma Yoku, who faces limited opportunities despite significant educational achievements. The segment reflects on the broader implications of China's educational push and the resulting challenges in employment for the youth.

20:23

🚜 Shifting Expectations and Rural Relocation

This section highlights the changing expectations of Chinese youth, with a focus on those trained in sectors like elderly care, who are reluctant to pursue jobs in their field due to the mismatch between their aspirations and available opportunities. The narrative of Zhang, who cannot utilize his degree due to his family's financial struggles post-COVID, illustrates the broader trend of young people preferring to stay unemployed rather than accept jobs that don't meet their expectations.

25:35

📉 Economic Slowdown and Blue-Collar Job Decline

Exploring the broader economic context, this paragraph outlines China's slowing economy and the impact on blue-collar jobs, essential for many rural youths like Matsunjin. Despite previous opportunities in sectors like manufacturing, the post-pandemic export decline and internal job market shifts have left many young people, particularly those from rural areas, struggling to find stable employment, exacerbating the urban-rural unemployment disparity.

30:36

🔍 Government Responses to Youth Unemployment

This segment discusses various governmental measures aimed at combating youth unemployment, from job subsidies to campaigns for zero unemployment in certain provinces. Despite these efforts, the underlying tension between modern employment challenges and historical movements, such as the 'sent-down youth' during the Cultural Revolution, reflects the complexity of China's current employment landscape for the youth.

35:38

🌱 Alternative Careers and Rural Innovations

Focusing on innovative rural employment solutions, this paragraph shares stories of young people like Xiao and his friends, who move to the countryside to engage in new business ventures like salted duck production. Despite the idyllic setting, these endeavors represent a significant adjustment and a departure from traditional urban employment paths, highlighting the diverse strategies Chinese youths are exploring in response to the job market crisis.

40:45

🔄 Economic Strategies and Long-term Prospects

The final section evaluates government policies and their long-term impact on employment and productivity. It critiques the encouragement of rural relocation for job creation as potentially detrimental to productivity growth. While temporary measures like wage subsidies and state enterprise employment offer some relief, the narrative suggests that broader economic reforms and stimuli are necessary for sustainable improvement in the youth job market.

Mindmap

Keywords

💡Youth unemployment

Youth unemployment refers to the situation where a large portion of young people (typically those between the ages of 16-24) are unable to find employment. The video highlights that in China, the youth unemployment rate has reached a record high of 21.3%, more than double the overall unemployment rate. This issue is portrayed as a significant concern for the Chinese government, as it is linked to social instability and potential unrest, as evidenced by historical events like the Arab Spring and the Tiananmen Square protests.

💡Skills mismatch

Skills mismatch is a situation where the skills acquired by individuals do not match the demands of the job market. The video cites examples of graduates who studied fields like civil engineering and property development, but found themselves unemployed due to the downturn in those industries. This skills mismatch is described as an acute problem in China, where drastic economic policy changes have led to the decline of certain sectors, leaving many graduates with outdated or irrelevant skill sets.

💡Degree inflation

Degree inflation refers to the phenomenon where employers require higher educational qualifications than necessary for certain job roles. The video mentions that in China's competitive job market, employers are increasingly demanding at least a master's degree for office jobs, even when the position may not justify such a high level of education. This trend is attributed to the sheer number of applicants vying for limited job vacancies, forcing employers to raise the bar for educational requirements.

💡Zero COVID policy

The zero COVID policy refers to China's strict containment measures aimed at eliminating the spread of COVID-19 through lockdowns, travel restrictions, and stringent testing and quarantine protocols. The video suggests that this policy disproportionately impacted the services sector, where many young people were employed, leading to job losses and exacerbating the youth unemployment crisis. The policy's impact on the economy is cited as a contributing factor to the sluggish post-pandemic recovery in employment for the youth.

💡Brain drain

Brain drain refers to the emigration of skilled or educated individuals from a country, leading to a loss of human capital. The video touches on this concept when discussing how some Chinese graduates are turning to unconventional jobs like live streaming or food delivery due to a lack of suitable employment opportunities. This implies a potential brain drain if skilled and educated youth are unable to find jobs that match their qualifications, leading them to seek opportunities elsewhere or settle for lower-skilled work.

💡Rural revitalization

Rural revitalization is a concept promoted by the Chinese government to address disparities between urban and rural areas. The video mentions government initiatives encouraging unemployed youth to seek job opportunities in rural areas, such as promoting agricultural products through live streaming. However, the video also draws parallels to the controversial 'Down to the Countryside' movement during the Cultural Revolution, highlighting the potential risks and concerns associated with such policies.

💡Economic restructuring

Economic restructuring refers to the process of transforming an economy's structure, often involving changes in industries, policies, and regulatory frameworks. The video cites examples of China's economic restructuring, such as the crackdown on the property sector, the curtailment of after-school tutoring, and the reining in of tech giants and the financial sector. These policy shifts are described as contributing factors to the skills mismatch and the rise in youth unemployment, as they led to job losses in once-vibrant industries.

💡Social stability

Social stability refers to the maintenance of order and cohesion within a society, without significant disruptions or unrest. The video repeatedly emphasizes the Chinese government's concern over the potential threat posed by high youth unemployment rates to social and political stability. Historical examples, such as the Arab Spring and the Tiananmen Square protests, are cited as instances where youth discontent and unemployment played a role in triggering social upheaval.

💡Consumption-driven growth

Consumption-driven growth is an economic model that relies on domestic consumer spending as a primary driver of economic growth. The video suggests that high youth unemployment in China could hamper this growth model, as young people account for a significant portion of the country's consumption. With a large segment of the youth population out of the workforce, their reduced spending power could limit the effectiveness of consumption-driven growth strategies.

💡Scarring effect

The scarring effect refers to the long-lasting negative impact of prolonged unemployment, particularly for young individuals at the beginning of their careers. The video warns that the high youth unemployment rate in China could lead to a scarring effect, where the skills of the unemployed may become obsolete, and their income potential may not recover even after finding employment years later. This highlights the potential long-term consequences of the current youth unemployment crisis.

Highlights

More than one in five Chinese youths are now officially unemployed, posing a threat to social and political stability.

The post-COVID recovery has been weaker in China than in many other countries, leading to a less vigorous recovery in youth employment.

Chinese leaders have found strong links between youth unemployment rates and drug use, crime rates, and other social issues, affecting society beyond just young people themselves.

Urban youth unemployment reached a record-breaking 21.3% in June 2022, and economists expected a further uptick when the 2023 graduating cohort joined the workforce.

The shift from zero-COVID policies disproportionately impacted young people employed in the services sector, leading to job losses.

Degree inflation and intense competition for limited vacancies have made a master's degree a necessity for office jobs, even when the position may not justify it.

China's economic policies, such as the property crackdown and the closure of the after-school tutoring industry, have contributed to the rise in youth unemployment.

While China faces a shrinking population and potential labor shortage, many educated youths struggle to find jobs due to a skills mismatch.

The expansion of tertiary education in China has created an oversupply of college graduates competing for limited job openings.

Affluent families can afford to have their unemployed graduate children stay at home, but this "luxury problem" may become more challenging as family incomes dwindle.

The Chinese government is concerned about the threat of youth unemployment to social and political stability, as seen in the Arab Spring and the Tiananmen Square protests.

Frustrated youths have likened themselves to Konichi, a fictional figure who studied but lived in poverty due to unemployment, leading to a popular rap song criticizing their situation.

The government has implemented measures such as wage subsidies, ordering state enterprises to hire more youths, and encouraging migration to rural areas to address unemployment.

Some youths have turned to unconventional ways of making a living, such as live-streaming and online influencing, due to a lack of job opportunities.

The consequences of prolonged youth unemployment include skill obsolescence, inability to recover income levels, and potential social issues like drug abuse and crime.

Transcripts

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