This stat is mind-blowing. And it shatters a lot of preconceived notions about China’s rise and how the job market functions in the quasi-communist, quasi-capitalist economy. 1-in-5 young people are unemployed in China.
As this article from Forbes notes, a decade ago, China’s huge flow of STEM (Science, Technology, Engineering, Maths) graduates was seen as a competitive threat to the West. A decade later, this huge flow of STEM graduates is becoming a headache for China. There is nothing more destabilising for a country than a massive number of highly-educated, idealistic, unemployed and ultimately disaffected young people. China’s social contract is a little different to the West – it asks Chinese people to give up a number of their rights and in return the system will deliver them prosperity. Such high levels of youth unemployment suggest the state isn’t living up to its end of the bargain.
China has responded to this situation with a 15-point plan which includes a major focus on retraining, programs to support entrepreneurs and an expansion of jobs at state-owned enterprises. But this will remain a story to watch over the years. How this generation of Chinese people find their way in the system – can they find jobs, can they buy homes, and can they start families – will have a big influence on China’s direction when they ultimately take leadership positions in decades to come.
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