China’s youngsters are now ‘retiring’ outside cities

Young workers in China are increasingly opting for early “retirement,” retreating to rural areas as they struggle to navigate the country’s employment landscape. This exodus, driven by rising unemployment and disillusionment with high-pressure urban jobs, reflects broader economic challenges that have left them unable to envision a path forward.

Driving the news: China’s urban youth unemployment rate reached 18.8% in August, the highest since the data series was released in January. This year, over 11.8 million college graduates entered the country’s labor market, where credentials are reportedly devalued and opportunities in high-growth sectors such as finance and real estate have sharply contracted. Disillusioned by job scarcity and intense competition, many young Chinese have decided to move to rural areas like Guizhou, Sichuan and Yunnan, where the cost of living is lower. They document their lifestyle changes on social media, embracing simpler lives that contrast with high-pressure work environments in cities. “Life is not just about the prosperity of the city,” said “Wenzi Dada,” a self-proclaimed 22-year-old retiree, as per CNBC. Many of such “retirees” have turned to gig economy work or social media influencer roles to sustain their minimalist rural lifestyles. While some view this retreat as “lying flat,” others see it as necessary self-care in the face of mounting economic and social pressure.
The big picture: China’s economic slowdown, paired with a rapidly aging population, poses significant challenges for its future workforce. As President Xi Jinping pushes job creation, structural issues persist, including underinvestment in vocational training and ongoing layoffs even in government sectors once considered stable. To address the strain on the pension system, China is raising its retirement age starting in 2025, incrementally increasing it to 63 for men, 58 for white-collar women and 55 for blue-collar women. Critics argue that while the move may alleviate pension shortfalls, it could exacerbate youth unemployment by keeping older workers in the job market longer. “It’s like deferring a ticking time bomb,” demographer Yi Fuxian told Young Post. Moreover, delaying retirements could reduce the availability of grandparents for child-rearing, further discouraging young families from having children — a key concern as China’s birth rate hits record lows.

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