China’s unemployment crisis shows no signs of easing as graduates face reality check due to coronavirus

China is set to release its June unemployment figure on Thursday, along with the headline gross domestic product (GDP) growth rate

China’s policymakers have already prioritised employment for this year, vowing to create 9 million new urban jobs

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China’s official surveyed urban unemployment rate peaked at 6.2 per cent in February but moderated to 5.9 per cent, or 27 million unemployed, in May. Photo: Xinhua

Published: 12:36pm, 15 Jul 2020Updated: 10:55pm, 15 Jul 2020

One of a record high 8.7 million graduates who entered China’s job market this summer, the next stage of Rita Zhang’s life has started badly.

The 23-year-old, who studied cultural industry management at a university in Beijing, was looking forward to joining an advertising start-up until the outbreak of coronavirus led to nationwide lockdown in late January.

The job offer was withdrawn with her prospective employer battling high office rent and diminishing revenues, stranding Zhang in southwestern province of Yunnan, unable to seek alternative opportunities.

After failing to enrol on a local teacher programme, Zhang eventually accepted a role as a new media assistant at a local training company, with a monthly salary of just 2,000 yuan (US$286), although this lasted for just two months.

All my career plans have been disrupted

Rita Zhang

“All my career plans have been disrupted,” she said. “I’m now preparing for the postgraduate exam next year. I hope that everything will return to normal when I’m back [in Beijing].”

While no official employment data on new graduates available, some research has estimated that only a quarter had received a job offer by the end of May.

Add this to the questionable status of many of China’s 290 million migrant workers, many of which have lost their jobs due to the coronavirus, the outlook is bleak. A report by Renmin University at the end of June also suggested 80 million service sector employees and 20 million manufacturing jobs had also been affected by the outbreak.