China’s Youth Face Employment Crisis as “Rotten-Tail Kids” Phenomenon Emerges
China’s rising unemployment rates are forcing millions of college graduates to accept low-paying jobs or rely on their parents’ pensions, giving rise to the term “rotten-tail kids.” This phenomenon draws parallels to “rotten-tail buildings,” a term used for unfinished homes in the country.
A record number of college graduates are entering a job market severely impacted by COVID-19 disruptions and regulatory crackdowns on finance, technology, and education sectors. Youth unemployment hit an all-time high of 21.3% in June 2023, prompting officials to suspend the data series for reassessment. Despite efforts to reconfigure the jobless rate, it spiked to 17.1% in July 2024, indicating persistent challenges.
President Xi Jinping has emphasized the importance of finding jobs for young people, with the government promoting job fairs and supportive business policies. However, many college graduates are finding better job prospects and upward social mobility increasingly elusive.
Some jobless youth have returned home to live as “full-time children,” relying on their parents’ pensions. Even post-graduate degree holders are struggling to find jobs in the bleak economy. Graduates face limited options: lowering expectations for top-paying jobs or accepting any available position. In extreme cases, some have turned to crime out of desperation.
Zephyr Cao, a master’s degree holder, has stopped seeking full-time work due to low wages and is considering pursuing a PhD to improve his prospects. Amada Chen, a recent graduate, quit her sales job due to toxic work culture and low pay. Chen had aspirations to become a quality inspector or researcher but received mostly sales or e-commerce job offers, leading her to reconsider her career path and potentially turn to modeling.
The issue of joblessness among college graduates is not new. China expanded university enrollment in 1999, leading to an oversupply of graduates. Authorities expressed concern over job availability as early as 2007, an issue that has persisted. Even students with majors aligned with market needs face uncertainty. Shou Chen, an AI major, has yet to secure an internship and remains pessimistic about the job market.
A recent study predicts that the supply of tertiary students will exceed demand from 2024 through 2037, with new graduates peaking at around 18 million in 2034. This forecast paints a concerning picture for China’s youth employment landscape in the coming years, highlighting the need for comprehensive solutions to address this growing crisis.