China’s youth unemployment rate has reached alarming levels, leading to the emergence of a disillusioned generation known as “rotten-tail kids.” These young adults, faced with limited job prospects, are often forced to accept low-paying jobs, rely on their parents’ support, or exit the job market altogether. China’s $19 trillion economy is showing signs of a downturn, with both consumers and businesses growing pessimistic. Despite government efforts to boost consumption and investment, such as reducing interest rates, the measures have had minimal impact on economic momentum.
The latest data suggests a slowdown in domestic demand, a vital driver of growth. The nation’s job market is challenging for young graduates. The youth unemployment rate for those aged 16-24 reached 21.3% in June 2023, prompting officials to temporarily stop publishing the data.
Even with revised methodologies, the jobless rate for young people excluding students rose to 17.1% in July, indicating a continued reluctance among employers to hire in a stagnating economy. Rising unemployment has driven millions of college graduates into dire straits. Many must settle for low-paying jobs or depend on family support.
Government efforts to create more job opportunities have thus far been ineffective, resulting in widespread pessimism among job seekers. The job market crisis has also led to an increase in scams targeting desperate individuals.
China’s youth face job crisis
In one case, a 19-year-old intellectually disabled man was deceived into undergoing breast augmentation surgery, falsely promised that the procedure would help him secure employment at a cosmetic surgery clinic in Wuhan. The scammers convinced him to take out a loan of 30,000 yuan ($4,180) to cover the cost, sparking outrage across China. The crisis is eroding the traditional social contract in China, where higher education was once seen as a path to secure employment and upward mobility.
Many graduates, even from prestigious universities, now find that their qualifications do not translate into job security. Yun Zhou, an assistant professor of sociology at the University of Michigan, highlights the growing despair among young people. “For many Chinese college graduates, better job prospects and upward social mobility have increasingly become elusive,” Zhou notes.
Zephyr Cao, who holds a master’s degree from China Foreign Affairs University, and Amanda Chen, a recent graduate from Hubei University of Chinese Medicine, both express disillusionment with the job market. Cao has stopped seeking full-time work after receiving low salary offers, while Chen quit her sales job after a month due to a toxic work environment. Liu Aihua, a spokesperson for the country’s statistics bureau, acknowledges the ongoing pressure on job seekers.
“Key groups still face pressure in finding work,” Liu said, in light of data showing China’s overall jobless rate had risen to a four-month high in July. The disillusionment and frustration among young Chinese people are not confined to those with lower-tier degrees or less prestigious backgrounds. It is a widespread issue that touches graduates from top institutions as well, signaling a challenge for China’s future economic and social stability.
