China’s youth unemployment rate has been persistently high, especially for students seeking financial jobs. Some students are willing to spend $50,000 seeking help from career counseling services in hopes of landing their dream financial job. With China’s economic growth slowing down and the real estate market in distress, Wall Street has started to retreat from China, cutting back on recruitment efforts, leaving many empty-handed.
According to official data from the Chinese Communist Party, the number of college graduates in China reached a record high of 11.79 million in 2024. However, a report by Zhaopin Recruitment Platform published in May titled “2024 College Students Employment Report” revealed that by mid-April, only 48% of graduates had received informal job offers, showing a worse situation compared to the previous year.
Young people face difficulties in finding jobs as industries like finance, real estate, and technology in China are downsizing. The competition for job positions in Wall Street’s major companies is fierce. Bloomberg reported on August 6th that Goldman Sachs’ 2024 summer internship program received over 315,000 applicants but only accepted 2,600 interns, resulting in an admission rate of just 0.8%.
Berlew Consulting Company mentioned that the number of individuals seeking financial positions in China has increased by approximately 30% compared to the same period in 2023, while job vacancies have decreased by 30%. According to a recent report by Zhaopin Recruitment, some financial positions, especially in the fields of funds, securities, futures, and investments, have dropped out of the list of highest-paying industries in the second quarter.
In the backdrop of tough job market conditions in the financial sector, some students are willing to pay a high price for job-seeking assistance. They seek help from consulting companies for resume polishing, interview skills guidance, internal referrals, and more, aiming to secure positions in investment banks, hedge funds, and private equity firms. Despite these firms claiming to have multiple success stories, they admit that the competition for positions is more intense than ever.
For example, a Chinese student studying at the University of Pennsylvania spent $50,000 seeking assistance from a job placement agency, hoping to secure an interview invitation with a global investment management company through internal recommendation. However, after eight months and despite having internship experience, the student was unsuccessful in finding a job, expressing feelings of despair.
Even if students secure internship opportunities, there is no guarantee of a full-time job offer. Annie Lin, Chief Academic Officer of the Shanghai career counseling firm WallStreetTequila, told Bloomberg, “Before the pandemic, the probability of students getting a full-time job offer after completing a summer internship was 70%-90%. But since the pandemic, the offer rate from most companies has remained below 30%.”
Currently, the real estate industry in China remains sluggish, impacting market sentiment extensively. Tensions between Beijing and Western countries are escalating, leading to a significant slowdown in capital market activities in China.
As per a recent annual report, five out of seven Chinese securities firms under Wall Street and European banks have experienced losses or declining profits. This has resulted in a wave of layoffs, with these seven securities firms having reduced their staff to 1,781 employees in 2023, a 13% decrease from 2022.
Jamie Dimon, CEO of JPMorgan Chase, stated at a meeting in May that the bank’s investment banking business in China has seen a “cliff-like decline” in recent years, highlighting the challenges Western financial institutions face in China.
Bloomberg reported on April 16 that sources revealed Morgan Stanley plans to cut about 50 investment banking positions in the Asia-Pacific region, with at least 80% of layoffs taking place in Hong Kong and China.
The Senior Executive of the BlackRock Investment Institute (BII), a research institution under the largest asset management company globally, stated on December 6 last year that the slowing trend of China’s economic growth indicates better investment opportunities in other emerging markets outside China.
Wei Li, Global Chief Investment Strategist at BlackRock, mentioned that from a risk-adjusted perspective, the attractiveness of investing in China has decreased. This was also the reason behind the institution downgrading its investment rating on China earlier this year, suggesting better investment options in emerging markets outside China.