In recent months, the term “beauty of economic upswing” has become a popular topic on Chinese social media platforms. According to The Wall Street Journal, within the context of unreliable official data from the Chinese Communist Party, this trending topic highlights the increasing sense of frustration among job seekers and indicates that the Chinese authorities’ efforts to boost employment have not yielded the expected results.
The “beauty of economic upswing” is a nostalgic term referring to the 2000s to 2010s, when it was relatively easy for fresh graduates to find jobs. However, young people in China nowadays are not as fortunate, as reported by The Wall Street Journal.
Ernan Cui from Gavekal Dragonomics mentioned that a survey conducted by Cheung Kong Graduate School of Business based in Beijing revealed that the recruitment situation in the past two years has been significantly weaker than the average level.
Indicators show that even for those who are employed, their earnings are decreasing. Cui stated that last year, wages in various industries in China saw a significant decline surpassing the levels during the COVID-19 pandemic in 2020, marking the worst performance on record. The technology industry in the private sector suffered greatly, and even employers in the public sector implemented pay cuts, reflecting the financial pressure on local governments.
She further noted that this situation has dampened consumer confidence. “Many people feel that their job and income prospects are at risk, so they are reluctant to spend money.”
Despite the Chinese government’s efforts to provide tax incentives to businesses and offer more job training for job seekers in an attempt to boost employment, these measures seem to have had limited effectiveness.
Barclays’ private sector index, along with sporadic feedback from various industries and regions, indicates little improvement in the labor market. Economists suggest that reports on salary reductions and layoffs are becoming more prevalent.
Economists at Barclays mentioned in a recent research report, “We see signs of the labor market continuing to deteriorate.” They stated that recent sub-indices on employment in purchasing manager surveys suggest that concerns surrounding U.S. tariffs are slowing down the pace of hiring.
Calculations from Capital Economics reveal that nearly 6 million people (about 1.3% of China’s urban labor force) are directly facing the risk of unemployment due to additional U.S. tariffs.
As the youth unemployment rate remains high in China, new terms describing the plight of young people are emerging constantly. Following terms like “lost generation” and “full-time children,” the term “full-time good grandchildren” has gained popularity in China.
For some young people facing employment setbacks, they believe it might be better to return home to take care of their elderly relatives instead of struggling in big cities. “Even the elderly need caregivers, and relying on strangers is not reassuring. It’s better for me, as a dutiful grandchild, to take up this job.”
Historian Li Yuanhua, currently residing in Australia, told Epoch Times that on an individual family basis, grandchildren taking care of the elderly can address social and family issues. However, as a trend, it reflects the economic downturn in China where people are jobless and are forced into such positions, which is an abnormal phenomenon.
Ms. Liu, working at Alibaba in Hangzhou, expressed, “I never thought this year would be even tougher than last year.” She cited an example of a classmate who graduated from Zhejiang University and had worked for a central state-owned enterprise for many years. Recently, his entire department was downsized, leaving him in shock. This is not isolated, as even state-owned enterprises like the Southern Power Grid are conducting ruthless layoffs.
Ms. Liu also disclosed that even working in a state-owned bank is no longer secure. “A friend of mine only joined the Industrial and Commercial Bank of China Shanghai Branch last year, and this year, he was ‘optimized.’ The layoffs in state-owned enterprises are even more severe than many private companies.”