High youth unemployment rates in mainland China have reached alarming levels, with cases of couples both being unemployed. Some young people can rely on their parents, engage in a laid-back lifestyle, or even “pretend to go to work,” but many others are facing significant debts, forcing them to work hard to secure jobs and sacrificing a decent quality of life for mere survival.
Shanghai netizen “Caicai,” who graduated ten years ago, recently found herself and her partner both out of work. Feeling suppressed and anxious for a long time, she expressed frustration online, mentioning that the 2.4 million house they bought in Fengxian District depreciated by 1 million, causing them a substantial loss. They are also burdened with debts from mortgages, car loans, and the pressure to have children.
Discussing her situation with online friends, “Caicai” shared that they are paying a monthly car loan of 7,000 yuan and currently her husband is diligently looking for a job, while she has applied to thousands of positions without success, temporarily becoming a full-time caretaker for their child. “Employment prospects this year are too poor,” she lamented.
Another netizen from Shenzhen, “Warm Cat,” shared the harsh reality of her family’s predicament online. At 38 years old, she lost her job, and her husband also became unemployed, resulting in zero income for the family and two dependent children. They started frantically job hunting and faced the reality that for those over 35 who are unemployed, the only available jobs are in delivery services, ride-hailing, or nanny positions, making it challenging to maintain dignity and a decent living.
In July, netizen “Amber” from Shenzhen posted about the increasing unemployment in first-tier cities like Guangzhou, with many people losing their jobs. She expressed the heavy burden of bills, including rent in Shenzhen and a mortgage back in her hometown, creating immense financial pressure amid the grim economic outlook.
Numerous netizens confirmed to Epoch Times reporters that unemployed young people come from various industries, including e-commerce, real estate, and internet companies.
People online commented that having one spouse employed in a secure position is crucial, citing examples of friends with high salaries of 50,000 yuan being laid off, illustrating the widespread nature of the issue.
A netizen from Chongqing, “Xiaoxiao,” expressed her struggles, stating that she started job-hunting last year and found only exploitative jobs that paid around 2,000 yuan a month for long hours with minimal benefits and high sales targets.
Netizens jokingly referred to the limited opportunities for middle-aged unemployed individuals in China, describing them as being left with options like working in the “triathlon” of courier, food delivery, and ride-hailing services or the “lucky trio” of security, cleaning, and nanny jobs.
A mainland Chinese lawyer, Wu, emphasized that current unemployment is concentrated in traditional industries that have been established for many years. He mentioned that emerging industries and new productive sectors may provide some job opportunities but highlighted the lack of chances for those in their forties and fifties who lose their jobs.
Wu advised young people to avoid taking on large debts for housing, reduce expenses, and find ways to manage existing debts in the prolonged economic downturn lasting for decades rather than just a couple of years.
Tian Xie, a professor at the Moore School of Business at the University of South Carolina, stated in an Epoch Times interview that every country faces unemployment issues, with dual unemployment occurrences being less common in normal circumstances unless in times of severe economic depression. He remarked that China’s economy appears to have entered a severe downturn, and despite efforts to mask the situation, widespread unemployment cannot be hidden.
Xie pointed out that the high levels of debt shouldered by young unemployed individuals in China create an unsustainable situation. Unlike in normal countries where mortgage loans are typically limited to around three times the annual salary, in China’s high-priced real estate market, the easy availability of loans at unregulated levels has led to a debt trap for many, particularly the middle-aged and younger generations.
The proliferation of companies offering “pretend to work” services to unemployed individuals has emerged in various cities like Beijing, Chongqing, Shenzhen, and Harbin this year, with fees of 30 yuan per day for individuals to use the space for studying, sleeping, or remote interviews. Some companies claim to be almost fully booked daily.
The founder of a pretend to work company in Hangzhou, Chen Yingjian, stated that 60% of their clients are there to fulfill their entrepreneurial ventures rather than being part of the “lying flat” community. These individuals temporarily use the space and atmosphere of the office until they find their niche, seeking personal improvement rather than idleness.
Netizens commented on the rise of such companies, noting that individuals facing unemployment might be judged for staying at home, hence the demand for such spaces. They stated that where there is a service provided, there will be a demand for it, observing the diminishing opportunities and incomes in China’s job market.
While recent official reports in June 2023 indicated a youth urban unemployment rate as high as 21.3%, private estimates suggest a far worse reality. Beijing University economics associate professor Zhang Dandan emphasized that considering individuals who have given up job hunting into the calculations, the actual youth unemployment rate could be as high as 46.5%.
In conclusion, the prevalent issue of youth unemployment in China is exacerbated by mounting debts, limited job prospects, and an economy entering a prolonged downturn. The emergence of pretend to work companies reflects the desperate need of the unemployed population for productive engagement, hinting at the severity of the unemployment crisis in the country.