China’s economic downturn has forced many overqualified graduates into low-skill jobs, painting a stark picture of the nation’s employment challenges. Stories of a delivery driver with a degree in philosophy, a handyman with a master’s in physics, or a Tsinghua University PhD applicant vying for a police auxiliary role are becoming increasingly common in the country’s strained labor market.
Take Sun Zhan, a 25-year-old finance graduate whose dream was to secure a lucrative investment banking role. Instead, he now works as a waiter in a hot pot restaurant in Nanjing. “I wanted to make a lot of money,” he says, “but I couldn’t find the right opportunities.” His parents, embarrassed by his job choice, pressured him to pursue a more prestigious career. But Sun has a secret plan: to use this job to learn the restaurant business and eventually open his own establishment.
China’s higher education system produces millions of graduates annually, but the economy cannot absorb them all. Sluggish growth in critical sectors like real estate and manufacturing has exacerbated youth unemployment, which peaked at nearly 20% before government adjustments in reporting metrics. As of November 2024, the rate has dropped slightly to 16.1%, but the underlying issues remain unresolved.
Wu Dan, a 29-year-old finance graduate from the Hong Kong University of Science and Technology, represents another example of the employment crisis. After rejecting offers from private equity firms due to poor working conditions, she shifted her career to sports injury massage. Despite her family’s disapproval, Wu finds satisfaction in her new path and dreams of opening her own clinic. However, she acknowledges that she couldn’t sustain her life in Shanghai without her partner’s financial support.
Many graduates, unable to find suitable work in their fields, are turning to unconventional jobs. Some have joined the film industry as extras. In Hengdian, China’s film production hub, graduates like 26-year-old Wu Xinghai, who studied electronic information engineering, work as background actors. Wu plays minor roles like a bodyguard in dramas and sees the job as a temporary fix while he searches for something more permanent.
Professor Zhang Jun of the City University of Hong Kong notes that young people in China are being forced to redefine their expectations of a “good job.” Layoffs in major industries, including tech, and the decline of reliable graduate-level roles are pushing many into jobs far below their qualifications.
The dissatisfaction isn’t limited to the unemployed. Wu Dan observes that even her employed peers feel uncertain about their futures. “They don’t know how long they can hold onto their jobs. And if they lose them, they wonder what else they can do.”
This uncertainty reflects broader economic challenges in China. Once the envy of the world for its rapid growth and abundant opportunities, the nation now struggles to provide meaningful employment for its educated youth. Graduates face a stark reality: the prestigious degrees they worked so hard to earn no longer guarantee stable or fulfilling careers.
As China grapples with its economic challenges, its youth are learning to adapt. Whether by pursuing unconventional jobs, embracing entrepreneurship, or recalibrating their expectations, they are finding ways to navigate an uncertain future. While the road ahead remains unclear, many like Sun and Wu are determined to carve out their own paths, defying societal pressures and seeking fulfillment in unexpected places.