China’s rising unemployment rate creates ‘rotten-tail kids’

Rising unemployment in China is forcing millions of college graduates into low-paying jobs or dependence on their parents, creating a new “rotten-tail kids” working class that is being compared to unfinished “rotten-tail buildings” plaguing the nation’s economy since 2021.

Jobless youth: A record number of graduates are struggling to find jobs amid a labor market weakened by COVID-19 and regulatory crackdowns on finance, tech and education. Youth unemployment hit a record high of 21.3% in June 2023, prompting officials to suspend data reporting for reassessment. Despite government efforts, the jobless rate remains high, reaching 17.1% in July this year.
No guarantees: Many graduates in China are finding that their degrees no longer guarantee upward mobility or better job prospects, leading some to reconsider their career paths or further their education in hopes of better opportunities. However, even graduates with advanced degrees are struggling to find jobs as the competitive academic environment has not translated into job security. China has expanded university enrollment since 1999, but the supply of graduates continues to outpace job availability. The imbalance is expected to persist until 2037, when declining fertility rates may reduce the surplus of graduates.

Share this Article