As China’s economy reels, Youth unemployment has hit 21% — on par with Italy.
A Dollar An Hour – With a College Degree
From a Financial Times report:
Job opportunities scream from posters at an employment fair in central China’s Zhengzhou. “Join us for the future!” urges one advertising positions for graduates to sell electric vehicles. Others seek “courageous” candidates or “attractive females” to sell medical equipment.
But many of the jobs require 70 hours of work a week and command salaries as low as Rmb3,000 ($400) a month. Wang, a commerce graduate, struggles to get enthused.
Zhengzhou, the industrial capital of a province of about 100mn people and home to the world’s largest Apple iPhone factory, ought to be able to offer its graduates better career prospects, said Wang, who did not want his full name to be published.
At $400 a month with seventy hour work weeks and 2 weeks vacation, Wang’s pay would be just $1.37 an hour.
We’re used to viewing Italy as an economic basket case. But now China, the biggest growth story of the 21st century so far, has reached comparable levels of unemployment at a much lower level of income. China’s youth unemployment also exceeds that of other trouble economies, likes France or Portugal.
A multiyear Covid lockdown, real estate crisis, and crackdown on private business have all contributed to China’s woes. But demography may be the biggest challenge of all.
China — The Next Japan?
China’s fertility rate dropped to 1.09 children per woman in 2022. China’s population is falling, and India has recently surpassed it as the world’s most populous nation.
Japan went down this road a long time ago. However, Japan was much richer when its population began to fall. What’s more, China’s former one child policy means that the demographic decline will be even steeper.
I’ve spent a lot of time in Japan and speak the language conversationally. I’ve often asked young Japanese why they don’t have more children.
They mention the same 3 things every time: low wages, long work hours, and unaffordable child care. China faces the exact same problems.
Wrap-Up
China’s jobless generation is also the best educated in the nation’s history. A large group of well educated and unemployed youth is a political powder keg.
If the Communist Party can’t create decent jobs for them, China’s youth may rebel. Perhaps the only way to fix China is to give the people a voice.
What do you think the future holds for China? Leave a comment and let us know!
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Photo: “Youth looking for a new job, Guangzhou, China” by ILO in Asia and the Pacific is licensed under CC BY-NC-ND 2.0.
