Employment of youth improving, with new trend in many sectors

Some Western media outlets have recently highlighted China's unemployment numbers, particularly among the youth, often depicting the situation as a "crisis". Such portrayals exaggerate and distort the country's unemployment situation.

With the introduction of a series of government policies, China's unemployment scenario is improving.

According to the latest data from the National Bureau of Statistics, the average urban surveyed unemployment rate in the first quarter was 5.5 percent, a slight decrease from the previous quarter. In April, with the arrival of the peak production and business season, employment increased, and the unemployment rate fell to 5 percent, a decrease of 0.2 percentage points quarter-on-quarter.

Such data indicate a positive trend in China's employment market.

China's burgeoning new industries continue to generate employment opportunities, while traditional labor-intensive sectors still require a large-scale workforce.

In late 2022, the Chinese government identified the 100 most "labor-scarce" occupations, with substantial demand in production, manufacturing, services sectors, and technical fields. Many of these roles offer diverse options and do not require extensive qualifications, presenting ample choices for young job seekers.

Looking ahead, China's anticipated digital technology growth over the next several decades can potentially bring profound shifts in economic development paradigms and industrial structures, likely reshaping employment dynamics significantly. These evolving trends are crucial for predicting China's future employment landscape.

While traditional employment metrics remain important, it is equally essential to recognize the emergence of positive trends and nuanced realities in China, which may diverge from Western media narratives.

Moving to small cities

The proportion of Chinese youth willing to work in small cities is increasing. Historically, China's macroeconomic policies have focused on unlocking the job potential in impoverished rural areas. Through sustained poverty alleviation efforts, China has successfully generated large numbers of new job opportunities in rural regions.

In May 2023, 10 central departments initiated a plan to recruit 1 million job trainees. By November 2023, over 1.2 million trainee positions had been filled. Additionally, in 2023, this program recruited 42,000 college graduates nationwide to work in small cities and remote areas.

Chinese youth who participate in this program often secure formal jobs after two years of work. Alternatively, they can choose to continue their studies or pursue other career paths.

Enthusiastic young people

The reality of Chinese youth differs significantly from the "lying flat" stereotype portrayed by some media outlets. In fact, most young people have shown a strong enthusiasm for employment. Learning new skills and exploring diverse opportunities are increasingly becoming common aspirations among Chinese youth in their job searches.

To gain an edge in the job market, many Chinese students are making more efforts to actively hone the skills necessary for employment and actively engaging in training programs to obtain industry-related certifications.

Many young Chinese proactively venture beyond campus boundaries to gain comprehensive insights into emerging industries. This hands-on experience not only helps them understand industry trends, but also meets practical job requirements.

Flexible employment

China's workforce includes a significant number of flexible jobs. Judging from the data released by the NBS, employment statistics have not yet included flexible employment.

Many Chinese college students, recognized for their proactive thinking and innovation, have become a dynamic force in the sharing and platform economy. Their approach to flexible employment often differs from traditional models, focusing on self-employment and entrepreneurship facilitated by new technologies like the internet and big data.

With the rapid growth of China's digital economy, the emergence of new forms of flexible employment driven by modern information networks and communication technologies has become increasingly significant in stabilizing the employment landscape.

According to the Ministry of Human Resources and Social Security of China, by the end of 2021, the number of flexible workers in China had reached approximately 200 million.

Looking ahead, the Alibaba Research Institute forecasts that the number of new flexible workers in China could potentially reach 400 million by 2036, which will provide large numbers of job opportunities for the youth.

New industries, jobs

The emergence of new industries in China has significantly boosted job creation and enhanced the overall employment structure. These burgeoning sectors, such as artificial intelligence, digital economy, intelligent manufacturing, and information technology, are pivotal in generating new industries and job opportunities, thereby continually expanding the employment landscape. Specifically, automobiles, electronic products, semiconductors and new energy have become pivotal in driving recent growth.

These new career avenues predominantly align with the skill sets of college students, underscoring their technical proficiency and adaptability. Additionally, the rise of innovative business models, such as the sharing economy, online education and telecommuting, has further broadened employment prospects for college students. Professions in sectors like digital marketing, e-commerce, tech support and remote project management have emerged as sought-after roles in the market.

Services sector spillover

The services sector's proportion within China's economy has continued to grow, contributing significantly to economic expansion, job generation, consumption enhancement, social welfare and more. Moreover, the employment priority policy has been effective, and the vigorous development of new industries, formats, and models has created new occupational demands.

The number of employees in China's manufacturing sector remained stable in the second quarter, while employment in the services sector increased significantly, according to the NBS. The year-on-year growth rate of employment in the services sector was substantial, indicating that its capacity to absorb employment continues to rise.

Within China's services sector employment landscape, segments like wholesale and retail, transportation and warehousing, education, and accommodation and catering play pivotal roles, collectively comprising over half of the workforce. As previously mentioned, there is a noticeable shift among Chinese youth who are increasingly abandoning traditional career paths in favor of actively engaging in the services sector with a more positive outlook.

As incomes increase, there is a growing demand for improved quality of life services, such as community services, elderly care, patient support, community family doctors and healthcare services. These sectors are becoming increasingly vital as people seek higher standards of living. In the future, employment opportunities are expected to expand significantly within these industries to meet these rising demands.

Brightening prospects

According to the NBS, the unemployment rate for young people aged 16-24 dropped to 13.2 percent in June from 14.2 percent in May, marking a decrease for three consecutive months. That for people aged 25-29 has declined to 6.4 percent, suggesting that this group is starting to gain valuable work experience and build their careers, heralding improving job prospects.

To conclude, China's youth employment situation is far from the "desperate" condition that is often portrayed by some international media outlets.

Jake Haselkorn is a visiting professor at the School of Journalism and Communication, Tsinghua University, and former Asia bureau chief of CBS News. Xu Bo is a research fellow at the school.

The views don't necessarily reflect those of China Daily.