China’s youth unemployment poses long-lasting risks

China's youth unemployment poses long-lasting risks

Youth unemployment is a problem that affects all countries, but in China, the level of 21.3 % is particularly concerning because it could have an impact on other markets and political relationships in addition to being high.

The National Bureau of Statistics of China announced it would stop reporting age-specific data because it needed to” increase and improve labour force study statistics” at the same time as the rate’s discharge, which more than doubled the pre-Covid rate of May 2018.

Because of societal expectations and state policy, youth unemployment is a complicated problem, but it is even more so in China.

According to the Hukou structure, families in China must register before their residence, place of employment, and access to public services are all decided by the authorities.

Remote residents are frequently prevented by the system from utilizing industrial opportunities, which can affect their employment prospects.

The objectives that come with being the only child in the family as a result of China’s one-child scheme, which was abandoned just seven years ago, only serve to increase the stress and uncertainty felt by this demographic.

The” Ant Tribe” phenomenon

Lian Si, a sociologist, coined the term” Ant Tribe” in 2009 to describe highly educated young people trapped in low-paying, temporary jobs that impede skill development.

These young people are unable to amass cultural funds, which creates a vicious cycle that is difficult to break. This highlights a break in the profession ecology and reduces their return on their educational investment.

The” Ant Tribe” phenomenon is more than just a sign of a flawed economy. It also reveals a deeper emotional and psychological issue. Being over-educated and underemployed causes significant emotional trauma, including anxiety, depression and hopelessness.

Social changes like the” lying flat” movement and the rise of” full-time children” in China further complicate this emotional toll.

These trends redefine household expectations and challenge established standards of success, adding a new layer to the emotional challenges the younger generation faces. Long-term effects can result in a less effective and impressive workplace.

There is a disconnect between school programs and job market requirements despite the rapid growth of higher education.

Programs frequently prioritize idea over practical abilities, leaving graduates unprepared for the workforce. For instance, executive students may concentrate on calculations and theories while ignoring practical applications like internships.

Chinese students in a classroom taking notes
Some job seekers are forced to go back to school because there are so many unqualified applicants. Shutterstock via The Conversation image

Furthermore, the market is flooded with overqualified applicants, particularly in the engineering, finance, and healthcare industries. This disparity encourages numerous people to pursue further studies.

4.74 million individuals took the graduate entrance examination in 2023, a startling 135 % increase over the 2.01 million test-takers in 2017. Children unemployment and underemployment are made worse by this pattern.

The overall effect

The children unemployment issue in China has a ripple effect that should not be understated. High unemployment costs, particularly in countries with a sizable children people, can cause civil unrest, according to UNICEF warnings.

By obtaining a social certificate based on economic stability and prosperity, the Chinese Communist Party has long maintained its autocratic stance.

China may undergo a major internal energy transition if rising youngsters unemployment undermines this license by encouraging social disengagement or radicalization.

For unrest may flow over into foreign relations in a world that is increasingly attached. Particularly among countries with nearby financial ties to China, civil unrest can make a country less firm and thus less appealing to foreign investment.

Given China’s crucial role in global supply stores, such an inner turmoil also poses a threat to destroy supply chain worldwide.

Domestic strife and social unrest can have an impact on a nation’s international relations, as demonstrated by historic examples like the Arab Spring and Brexit.

The Arab Spring resulted in the overthrow of numerous governments, local unrest, an impact on world oil prices, and the need for European nations to reevaluate their overseas policies.

Large group of people carrying placards protesting against Brexit
Brexit-related instability in Britain resulted in adjustments to international policy. Shutterstock via The Conversation, a photograph

Similar to how Brexit affected international trade agreements, caused social restructuring, and forced the European Union to reevaluate its foreign policy as a whole.

Although youth unemployment is a worldwide issue, we cannot afford to ignore it given the scope of the issue in China and its potential wider impact on connected markets.

What steps is China take to address the issue?

China can draw plan inspiration from other nations’ effective initiatives, like Germany’s two vocational training system. In order to better match education with labor market demands, this system makes sure that students are both professionally prepared and almost experienced.

It’s also important to address the urban / rural divide. China may encourage job growth in rural places by providing financial incentives, such as tax breaks and offers. Related strategies have been used in Australia and the US to draw medical professionals to sparsely populated areas.

The psychological impact of chronic poverty, which gets worse the longer graduates are unemployed, needs to be reduced in China as well. The problem has gotten worse since Covid, with 40 % of Chinese children reportedly being prone to mental health issues.

This is where companies for young people‘s mental heath, like those offered in Australia, might be helpful. These programs not only help the person, but they also help create a more involved, productive workforce that is crucial for the health of the country.

The unstable nature of the concert market has the potential to make the unemployment issue worse. Some Western nations, like France and the Netherlands, take job staff into account and provide social security benefits. In China, a similar concept could be used to offer advantages like pension plans and health insurance.

Last but not least, the scope and complexity of adolescent employment call for a multi-pronged strategy that crosses national boundaries.

Countries may actively collaborate on global initiatives to create career opportunities for youth and deliberately discuss effective employment strategies. The secret to creating a fresh, productive workforce that is stable worldwide is collaboration.

It’s not just a good plan to invest in younger people. It is morally necessary for shared growth and international security.

Senior Lecturer at Victoria University of Wellington’s Te Herenga Waka is Christian Yao.

Under a Creative Commons license, this post has been republished from The Conversation. read the article in its entirety.