China’s 8.34 million graduates fighting for fewer jobs as vacancies dwindle and gap years increase, survey shows

China’s 8.34 million graduates are facing a tougher and more competitive job market than their counterparts 12 months ago as a record number of applicants compete for a dwindling number of vacancies in an economy that is struggling to maintain stable growth in the midst of the trade war with the United States, a survey of students showed.

The number of job openings for each new graduate applicant dropped to 1.41 this year from 1.54 last year, according to Zhaopin, an online job recruitment platform that tracks job postings having surveyed 88,150 graduates from February to May, the peak hiring season during the year. A ratio above 1 means there are more vacancies than applicants.

The number of Chinese graduates will rise 140,000 from last year at the same time as firms struggle to prevent massive lay-offs in a slowing economy, increasing the central government’s concern to the point that it formed a special task force under the State Council this month to spearhead efforts to secure employment.

The State Council Employment Work Leading Group, headed by Vice-Premier Hu Chunhua, comprises 25 top leaders from different ministries and departments within the cabinet, and has a mission to “enhance leadership and coordination of work related to employment”.

In the three months since the Lunar New Year holiday in early February, job openings for graduates dropped 13 per cent compared to the same period last year, while the number of fresh jobseekers declined by 5 per cent, resulting in the lower ratio.

Of the students surveyed, 88 per cent felt it would be difficult to find a job this year, while about 8 per cent said they would be willing to take a gap year – putting job hunting and further education on hold – after graduation, an increase from 6.99 per cent last year.