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China

China's Jobless Graduate Army Falls Through Cracks in Economy (nikkei.com) 84

Record youth unemployment after Beijing clampdown on private sector, FDI slump. From a report: New graduate Glonee Zhang had high hopes when he landed a job at a lithium battery company in Shenzhen last summer. Now, like more than one in five young people in China, he's out of work. An English major entering a post-COVID working world, Zhang thought "the end of the pandemic would bring a bright future." Six months later, he and half of the firm's intake of 400 new grads were laid off when the company's sales slumped by 10% year-on-year. "Sometimes I feel my soul is being torn apart," said a downbeat Zhang, getting by in the meantime doing odd jobs.

Caught between a long-running regulatory crackdown by Beijing on private enterprise, and a slide in hiring by foreign firms in the country, young people now face a record jobless rate of 21.3%. Since the official number only includes people actively seeking work, some economists say the percentage of young people not in employment, education or training could be significantly higher. While the pandemic may have gone, its departure has unmasked a growing structural problem for President Xi Jinping and the Chinese Communist Party (CCP). The world's second-biggest economy is producing twice the number of graduates it did 10 years ago, with nearly 12 million this year - but not the jobs they're qualified to do.

"Over the years, China has expanded universities, but China is still a largely manufacturing [and services] based economy," Robin Xing, chief China economist at Morgan Stanley in Hong Kong, told Nikkei Asia. "This is structural, because the economy itself is big, it's gradually changing. But it takes time for China to become a more advanced economy like Japan, South Korea and the U.S., which have more professional services dominating job creation." In December 2019, before COVID struck, the youth jobless rate was 12.2%. Graduates like Zhang are now forced to consider continuing in higher education or trying for highly competitive but stable government jobs for which they are overqualified. Studying or working overseas is also an option for some.

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China's Jobless Graduate Army Falls Through Cracks in Economy

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  • by Anonymous Coward

    So, sure, they're producing graduates.
    Of whatever quality they happen to be.
    India tried the same thing.
    All these graduates do is bog down the market by depressing wages into the toilet.

    • by AmiMoJo ( 196126 )

      China has some excellent universities. You can expect the CCP to step in to address this issue. Like all dictators, they know that if things get too bad for the young people they are liable to rise up against them.

      • by Anonymouse Cowtard ( 6211666 ) on Thursday July 27, 2023 @04:31AM (#63717630) Homepage

        if things get too bad for the young people they are liable to rise up against them

        Which is the point where they are sent off to war. I've seen this movie before.

        • by AmiMoJo ( 196126 )

          The CCP seems more likely to just do a violent crack-down, like they did in Hong Kong, and Tiananmen before that.

          Their power isn't absolute though. They caved pretty quickly over zero-COVID protests when the scale of them became apparent.

        • by mjwx ( 966435 ) on Thursday July 27, 2023 @07:41AM (#63717862)

          if things get too bad for the young people they are liable to rise up against them

          Which is the point where they are sent off to war. I've seen this movie before.

          It's not just the young, at 35 you're considered too old to employ.

          China's problem is that it's government is entirely designed to rule a nation of peasants. Subsistence farmers, factory drones, et al. The rising middle class is causing this model a lot of problems so they've had to develop means to make the middle class peasants again, I.E. Social Credit. As a result a lot of wealthy Chinese are trying to move their wealth into western countries where they think the party can't touch it. The thing about the middle classes, as Europe found out in the 17th century is that they start to demand things peasants wouldn't dream of like autonomy, rights and luxuries. If there is a revolution, it'll start in the middle classes like it did in Europe because the Chinese government has the lower classes bottled up... and mass unemployment is just the catalyst that could start it.

        • Which is the point where they are sent off to war.

          A big difficulty with this option is that China is lacking young people to support their massively aging population. Killing off a sizeable chunk of the few young people they have, all the while being xenophobically averse to mass immigration, wouldn't help with that source of social unrest. Catch-22?

      • I think it's more likely these young geniuses will be allowed to emigrate, but not with their families. In their new homes, such highly qualified, hard-working people will be prime candidates for important jobs in the tech sector.

        With the right incentives, no doubt they could be persuaded to exploit their positions to "borrow" the kind of cutting edge technology China's oppressive regime has historically had difficulty developing for itself.

        • by AmiMoJo ( 196126 )

          Not sure what you mean by "allowed to emigrate", you don't need to ask the Chinese government for permission to do that.

          Emigration depends on the jobs being there in other countries. I doubt the CCP would rely on it. More likely they will push tech companies to take more people on, and retain them.

          • As I understand it, there's a lengthy queue of Chinese people waiting to emigrate. I have been told there are various ways to navigate bureaucratic delays and get to the front of the line.

            • by AmiMoJo ( 196126 )

              What bureaucratic delays? If you want to emigrate you apply for a passport and leave. Passports are very quick and easy to get, there is no queue. I have first hand experience of applying for passports.

              If you already have one you just go. China is not the North Korea, you don't need permission to leave.

      • that didn't work so well that one time when the a large portion of the younger generation tried just that. Whatever happened to the man that stood in front of the tank in Tiananmen Square?

        https://en.wikipedia.org/wiki/... [wikipedia.org]

        • by Anonymous Coward

          He live

          Funny how the most memorable moment of the Chinese killing everyone in their crackdown. Is a guy who wasn't even hurt.

          • Was wondering when I was going to see the Chinese troll.

            We don't know the guy in the photo wasn't hurt, because we don't know who he was. It is, however, significant that there's been no one claiming, "Yeah, that's me."

  • China is copying the west. It has a massive demographics problem with an insane old age dependency ratio hitting its economy over the next 20 years thanks to the one child policy. It needs hoards of young people to do jobs that support the old people in it's society.

    So the way it's doing this is by 'saving' for the future...by putting people out of work today.

    The west did this as well after the GFC (austerity). It's just the sort of absurd outcomes you get when your leaders are wed to the notion that a coun

    • Re:Stupidnomics (Score:4, Insightful)

      by DrMrLordX ( 559371 ) on Thursday July 27, 2023 @05:17AM (#63717664)

      Nobody has attempted anything as insane or barbaric as was China's One Child policy in the West. Various so-called Progressives certainly wished for such policies for certain groups, but they never had the chance to be so thorough as the CCP.

      It is peculiar and disturbing that you would equate "austerity" with something as awful as the One Child policy.

      • by jbengt ( 874751 )

        Nobody has attempted anything as insane or barbaric as was China's One Child policy in the West. . . . It is peculiar and disturbing that you would equate "austerity" with something as awful as the One Child policy.

        monkeyxpress did not say or imply that anyone in the West has attempted something like a one child policy, and did not say that austerity was equivalent to it. They said that China was implementing austerity because of the problems the one child policy created.

      • by nasch ( 598556 )

        Various so-called Progressives certainly wished for such policies for certain groups

        What policies are you referring to?

  • by _xanthus_47 ( 2612937 ) on Thursday July 27, 2023 @04:39AM (#63717638)
    In other parts of the world with poverty and a lack of prospects, religion tides people over. Religion does not appeal to everyone but it works for certain type of people, keeping them hopeful and content, especially when they don't have anything else to give them purpose. A nation with a billion atheists facing decades of economic slowdown is going to be bad.
    • by Anonymous Coward

      . A nation with a billion atheists facing decades of economic slowdown is going to be bad.

      I'd wager it would be better than the same situation with a billion religious crazies.

    • What makes you think everyone in China is an atheist?

      • by Anonymous Coward

        What makes you think everyone in China is an atheist?

        Propaganda.
        A sense of superiority that only comes from belonging to Gods chosen race.

      • Only 14% of Chinese report themselves as religious.

        It's not quite a billion irreligious Chinese, but it's close.

        • Would you report yourself as religious in China, even if you were? I wouldn't.

          Meanwhile:

          https://www.cfr.org/background... [cfr.org]

          (yes this is the same link I posted above)

          Most religious Chinese engage in some form of ancestor worship. And no the majority of Chinese are not Atheist.

    • Yeah, a billion religious nutters who think that they'd at least have a much better life in the next life if they can't improve their lot in this one by violence, that would be far better for the stability of the country.

    • In other parts of the world with poverty and a lack of prospects, religion tides people over. Religion does not appeal to everyone but it works for certain type of people, keeping them hopeful and content, especially when they don't have anything else to give them purpose. A nation with a billion atheists facing decades of economic slowdown is going to be bad.

      Maybe at one time, but imagine the USA with it's present day evangelists declaring themselves the true christians. They'd be on a gleeful spree of sending gay trans, and non-christians (their definition of christian)to meet their makers. Is that what you meant by tiding over?

    • by gweihir ( 88907 )

      What a load of bullshit. Religion is not the root f all evil, but still the the long-term champion. Most totalitarian regimes are pale shadows compared to what religion does to people.

  • With the advancement of AI and robotix, this will only get worse. More people will loose their jobs. So we really need to have a basic income real soon or a change on how to get food, housing and healthcare for free. Even I as a programmer am worried about my future due to AI.
    • by gweihir ( 88907 )

      While I agree with most of that, good programmers are not threatened. The code "written" by AI will likely be excessively expensive long-term, due to common bugs and vulnerabilities that are hard to spot but go into millions of software projects. Also, as soon as nobody writes original code anymore for AI to train on, AI will stagnate or, worse, lose skills and get worse (training AI on AI output is doing huge, irreparable damage to an AI model). Give this "AI for coding" insanity a few years and the whole

  • Record youth unemployment after Beijing clampdown on private sector, FDI slump.

    That does not read like a complete sentence. Is it supposed to be a headline? What is FDI?

    • Record youth unemployment after Beijing clampdown on private sector, FDI slump.

      That does not read like a complete sentence. Is it supposed to be a headline? What is FDI?

      Foreign direct investment.

  • Bullshit jobs (Score:4, Insightful)

    by Anachronous Coward ( 6177134 ) on Thursday July 27, 2023 @08:01AM (#63717914)

    "...China is still a largely manufacturing [and services] based economy...it takes time for China to become a more advanced economy like Japan, South Korea and the U.S., which have more professional services dominating job creation."

    Sounds like they need more bullshit jobs [wikipedia.org].

    • "...China is still a largely manufacturing [and services] based economy...it takes time for China to become a more advanced economy like Japan, South Korea and the U.S., which have more professional services dominating job creation."

      Sounds like they need more bullshit jobs [wikipedia.org].

      I hear Netflix has a bullshit job opening for a content manager that utilizes AI to create content for Netflix. The Chinese could apply for that one.

  • if you don't work 996 you are not an team player!

  • For the right we have:

    Media regulators have banned the display of “effeminate men,” ordering broadcasters to promote content with “traditional Chinese culture” instead.

    https://thechinaproject.com/bi... [thechinaproject.com]
    For the left we have:

    Many analysts reminded The China Project that the crackdown on Big Tech, at least from an antitrust perspective, is something the U.S. wants to do, but hasn’t. “What really surprises me is that this hasn’t happened in America yet,” a Chines

  • Theyâ(TM)ve got a whole lot of military age folk who could be used to invade other countries.
  • I predict China will start, or become involved in an armed conflict very soon.

    What better way to kill off most of the ~200,000,000 young disgruntled people that would be the ones to start a revolution against Xi and the other old men in charge.

    Plus a good war abroad has the added benefit of distracting the common person from the problems they have at home.

    Maybe XI will send some troops to help Putin.

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