Unemployment Market in China and possible suggestions


The characteristics of university graduates employment situation in China is: pressure and opportunity coexist. In 2009, the national university graduates were in total of 6.11 million people, furthermore the employment rate reached to 68% only.1 It means the employment situation is still grim. However, university graduate employment was in the face of great pressure, and at the same time, there were also some new opportunities, mainly manifested in the following aspects:

Firstly, China’s economy continues to grow rapidly, and it would lead to the strong pull of jobs. In the first half of 2004 China’s gross domestic product is 5.8773 trillion yuan, compared with the same period in 2003 increased by 0.9%. This is China’s highest economic growth since 1997. In 2009 China’s gross domestic product (GDP) growth of about 7.5%, more than half of the dominant spending growth was contributed by the government. According to the statistics of national bureau released, in the first three quarters of China’s GDP grew by 9.9% year on year. (Xin, 2003) 2

According to the current employment elasticity coefficient calculation, one percent increase in economic growth can provide around 7 million jobs; in other words, to 2010 can be an increase of 70 million new jobs. In spite of various unfavorable factors, if the overall economic development situation is sustainable, therefore, it could be absorbing more labor forces. (Shen, 2004) It was expected in the next five years, China’s economy will continue to increase at a speed of more than 7%, hence,  every year new jobs will be increased at least 5.6 million. It is better for the higher educated people to be employed.3

Secondly, after entered the WTO, China was accelerated the economy in the world. According to the investment of foreign capital and technology, it would be increase the demand for high educated personnel; therefore, the international trading market would be provided more job positions.

Besides, the government and the society were trying to increase employment opportunities as well as control the unemployment rate. However, an obviously problem was the unbalanced “supply and demand” employment market. Generally, company prefers the personnel who gain a period of experience in working based on your Bachelor degree, for example.  While the education system in China could not provide a student time to have the work experience. It means we were continued studying for over 10 years, and there were no time prepared for the students to do some work in between. From another side, what company requires does not make sense to a graduate student.  Moreover, a graduate student would like to be employed by a top 500 enterprises. Most of them were seeking for a quick path of making them successful. In this side, they had more requests for the companies as well. 4

001cc435601d0ad4d6d009Based above, the gap between employee and employer displaying clearly. How to solve these problems? First, Chinese government is promoting the Youth Entrepreneurship it means young people have priority to run their own business with the support from the policy. Graduate students could apply for lower interest loan from bank, as while Chinese government request lower tax. Furthermore, for the self-employed college students who have scientific and technological achievements, the government and university offering policy and financial support in terms of guarantee the graduates have the start up capitals, such as the Shanghai science and technology innovation center and Shanghai college graduates employment guidance center together set up “national college graduates of Shanghai science and technology venture capital”, the total amount of 15 million yuan.

xin_472020621084765660278In addition, to encourage college graduates working at countryside, especially the west part of China. A quarter of agricultural professional students employment crisis (employment rate below 30%), only 10% of the students employment supply and demand balance, and agriculture, medicine, professional talent is most in need of the western region, the rural areas. Therefore, adopt a variety of preferential policies, such as higher pay, promotions in advance (classification), giving higher amount of housing subsidies and family allowance, provide opportunities for further study and development, the free flow of the expiry of the work, to attract students to the most needed areas such as west, rural work, is an important way to solve the problem of graduate employment.

From another side, China should also improve the social service system for graduates. To strengthen the management and supervision of graduate employment market, with investigating the frustrations, false information which is using to attract exhibitors and student recruitment? Guiding to all kinds of graduate recruitment, the specification, improve the recruitment of the hardware and software environment, improve the quality of job fairs. In April last year, Beijing set up a service for employing persons of the permanent market, is popular among graduates, a group of temporary underemployed college students have found work here.

College graduates are urgently needed in our country’s talent resources, and it has been attracted extensive attention of the whole society. Held in April 30, 2004, “China’s job BBS” sixth plenary session, deputy minister of education, automotive industry, points out that China is planning to establish a platform satisfy the needs of the new situation, with characteristic of Chinese college graduates work management system and operational mechanism. Through China has adopted a series of symptoms, as well as graduates employment policies and measures have been promoted and the young college students’ employment work will present new gratifying situation.

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