China’s Economic Downturn and High Unemployment: Young People Losing Hope in Job Market, Plan to Leave the Country

Photo: A job fair in China (Getty Images)

[People News] "I can’t find a job related to my major, and I don’t have other skills, so now I’m delivering food," said Chen Ming, a history graduate student from Shanxi Province, in an interview with Voice of America.

Chen admitted that with a degree in history, employment opportunities are slim unless one secures a teaching position. Among his peers and juniors in the history department, almost none have found jobs related to their field. Most attempt to pass exams for civil service or teaching positions, but only a handful succeed.

According to a report by Voice of America, Chen Ming stated that he chose to major in history out of a deep passion for the subject. However, more than six months after graduation, he still has not been able to find a suitable job. Forced to set aside his passion for history and face reality, he took up food delivery work to make a living.

But even delivering food isn’t easy. A recent traffic accident left him with a fractured bone. While the injury wasn’t permanent, it pushed him to reconsider his career path.

"I took some time to recover and realized that delivering food isn’t a long-term solution. It’s too risky. You can’t deliver food forever—maybe you can do it now, but a few years later, you won’t have the stamina for it. This is work for young people. So, I decided to change direction, reconnect with friends, and explore opportunities to go abroad," said Chen Ming. He expressed a desire to move to Germany or the United States, citing better welfare systems and greater freedoms: "There, I won’t have to worry about being arrested for something I say."

Chaos at Home and Abroad: Unemployed Youth Have Nowhere to Turn for Justice

China’s economy continues to deteriorate, with youth unemployment rates remaining high. Official data from the Chinese government shows that although the youth unemployment rate slightly declined last month, it has stayed above 17% for four consecutive months.

The persistent weakness in China’s job market is primarily due to economic development being mired in both domestic and international challenges. Domestic demand is weak, foreign markets are shrinking, and foreign capital is steadily withdrawing from China. This year, foreign direct investment (FDI) in China may record a net outflow for the first time in over 30 years. Notably, international companies like Nissan and IBM have closed parts of their operations in China. For example, IBM shut down two research and development centers in China this year, resulting in over a thousand employees being laid off.

While the domestic economy struggles, Chinese overseas investments continue to grow, with outflows reaching at least $143 billion this year. Although the People’s Bank of China introduced a series of economic stimulus measures in September, causing rapid gains in Chinese and Hong Kong stock markets in October, these efforts have had little impact on the broader business market outside of the stock exchange.

Adding to the pressure, a record-breaking number of college graduates will enter the labor market in less than six months, intensifying the competition for jobs among young people. Recently, there have even been incidents of indiscriminate student attacks, suspected to be linked to dissatisfaction with employment prospects, highlighting the growing social tensions.

Is Leaving China for Overseas Work Feasible?

China’s Ministry of Education and Ministry of Human Resources and Social Security announced in November that the number of college graduates next year will reach 12.22 million, an increase of 430,000 compared to this year and a new historical high. This surge will place even greater pressure on the job market. In response, the Ministry of Education has launched employment assistance initiatives at universities, organizing more than 55,000 recruitment events since September and offering over 10.93 million job listings. Despite these efforts, securing an ideal position through academics alone seems like a pipe dream for many young people in China. Increasingly, Chinese scholars and young people admit that seeking opportunities abroad appears to be the best path forward.

Jin Shan, a Chinese economic commentator, believes that it is worth considering for young Chinese people to leave mainland China and develop careers in Hong Kong, Macau, or even overseas. However, observers have pointed out that many young Chinese, shaped by aggressive nationalist education, tend to have narrow perspectives and a limited worldview, making it challenging for them to adapt abroad. Jin Shan shares this concern.

"Hong Kong and Macau offer relatively accessible markets for talent and economic integration. However, the proportion of mainland Chinese in Hong Kong is already very high, leading to a certain 'mainlandization' of Hong Kong. Furthermore, integrating into the global market presents another significant challenge. Many young people lack the mindset for international opportunities. University education has not broadened their career horizons; instead, some have fallen into a strong nationalist sentiment and an ignorant attitude toward the outside world. These issues must be addressed," Jin Shan remarked.

Chinese Overseas Students Reluctant to Return, Prefer to Work Abroad

Wei Yuanlong, a psychiatry student at a university on the U.S. West Coast, candidly stated that he has no intention of returning to China after graduation and plans to continue his career development in the United States.

"Although the U.S. economy isn’t in great shape, it’s still better than China overall. Plus, earnings in the U.S. are definitely higher. As a first-year psychiatrist, you could earn around $100,000 annually, which would be impossible in China," he told Voice of America.

Wei added that among the Chinese international students he knows, most hope to stay in the U.S. after graduation unless they come from wealthy families. Many go to great lengths to make it happen.

"Of course, there are also many who can’t find jobs in the U.S.—I’ve seen a lot of them. If they can’t find work, some pay a company to sponsor their work visas, using this method to stay here," he said.

The harsh realities in China, including more limited opportunities and intense competition, deter many Chinese students from returning. The overwhelming pressure of the Chinese job market has even led some young people to tragic outcomes. On the evening of November 16, at the Wuxi Institute of Arts and Technology in Jiangsu Province, a recent graduate returned to the campus and carried out a knife attack, killing at least eight people and injuring 17. Official investigations revealed that the attack was motivated by the graduate’s failure to pass exams to obtain a diploma and dissatisfaction with internship pay, leading him to vent his anger through violence. Just a day after the Wuxi tragedy, another violent incident occurred at Guangdong University of Technology in Guangzhou, where a student attacked others in a dormitory. Videos taken by bystanders showed injured victims lying in pools of blood, though the severity of injuries and motives remain unclear.

Economic commentator Jin Shan believes that the dire employment conditions in China are pushing young people to the brink, leading to such extreme incidents.

"These tragedies happen when people are pushed beyond their limits, forcing young people into desperation. The low wages have fallen below the basic cost of living needed for a normal modern life. This bottomless reality leads to psychological and emotional extremes, driving individuals to violent outbursts," Jin Shan commented.