In China, a problem of plenty 

Pallavi Aiyar | The Hindu | June 22, 2006

http://www.hindu.com/2006/06/22/stories/2006062204011100.htm


MILLIONS OF bright-eyed college graduates in China are destined for 
disappointment this summer, their dreams of cashing in on the 
country's spectacular economic growth, shattered. According to a 
recent report by the National Reform and Development Commission, the 
country's central planning authority, there will be no jobs for 60 
per cent of China's 4.13 million students who graduate this year. 

Only 1.6 million jobs will be on offer, according to the report, a 
decline of 22 per cent compared to the previous year — even as the 
number of graduates has risen by 22 per cent since 2005. The 
unemployment situation is expected to only worsen in the coming 
years with young Chinese going to university in record numbers. 

Last year, colleges and universities enrolled 5.04 million students, 
4.7 times the number of those admitted in 1998. The total number of 
students in various kinds of higher education in 2005 was 23 
million — the highest in the world. Those among this thundering army 
of new graduates who do land jobs are increasingly finding 
themselves earning at a scale on a par with blue-collar migrant 
workers. 

In a recent column in the China Daily, columnist Liu Shinan recalled 
how only a few years ago college graduates in China were considered 
to be part of an elite and turned up their noses at salaries of 
3,000 Yuan ($375) a month. 

However, a government survey in 2005 found that the average monthly 
salary of employed graduates was just 1,588 Yuan ($198). In 
interviews with migrant workers in shoe factories in China's 
southern city of Wenzhou, this reporter found that wages for middle-
school graduates at the larger factories were as high as 1,200 Yuan 
a month. 

Mr. Liu recounts a popular joke: When a company boss yells that he 
needs 10 workers, he is answered by five migrant workers, four 
college graduates and one M.A. 

Way to mobility 


In China education has traditionally been seen as a way to upward 
mobility. Unlike India where caste and birth determined status, the 
Chinese imperial examination system remained theoretically open to 
all, so that through study even peasants could aspire to join the 
bureaucracy. 

As a result of this ingrained mindset parents are willing to invest 
their entire life savings in securing a university education for the 
one-child they are allowed by law to have. 

Rural families, whose annual income amounts to a few thousand Yuan, 
often borrow money to cobble together the 10,000 Yuan ($1,250) a 
year fees that many Chinese universities have begun to charge. But 
increasingly, as the disappointed faces and snaking queues at job 
fairs around Beijing indicate, this is an ill-afforded investment 
that provides low returns. 

In an interview to China's official news agency Xinhua, Vice-
Minister of the Ministry of Labour and Social Security Zhang 
Xiaojian blamed the lack of adequate jobs on "surplus production 
capacity, more trade frictions and the revaluation of the Yuan." 

The logical conclusion would appear to be that China is suffering 
from an oversupply of graduates. However, in his column Mr. Liu 
points out that China only has some 150 graduates for every 10,000 
citizens, compared to 1,500 in the United States and 900 in Japan. 

According to Anna Westlake, a human resources consultant with over 
10 years experience in the mainland, most companies are desperate to 
hire. Their problem lies not in the number of graduate applicants 
but the quality of those applicants. Few prove to be independent and 
creative thinkers and fewer still are equipped by their universities 
with the skills in demand in the job market. 

China's education system today is best described as semi-privatised. 
Formerly state-sponsored institutions increasingly must rely on 
raising funds themselves. However, the resulting high tuition fees 
are often not matched by improved teaching quality. 

This reporter was formerly a visiting lecturer at the prestigious 
Communications University of China, the top journalism school in the 
country. Admission was competitive and only 50 students out of a 
total 10,000 applicants were accepted for a new major in "English 
Broadcasting." The students had to pay 10,000 Yuan a year in 
addition to another 1,200 Yuan for accommodation. The first batch 
from this new major graduated last year. Today only one out of the 
50 graduates has been able to find a job in English-language 
broadcasting. 

While others have found places with Chinese-language media 
companies, many work as secretaries or being unable to find a job at 
all have decided to study further in the hope that an additional 
degree might improve their employment prospects. "I ended up very 
disappointed with the degree," says Teresa Lee who was only able to 
find a job as a secretary at an investment bank, despite having done 
well in her exams. "We learnt almost nothing in the four years that 
was of actual use in the job market, as I was to discover," she adds 
bitterly. 

Ms. Teresa says that despite her disappointment she is aware that 
she is lucky to have a job at all and attributes it to the fact that 
the Communications University of China is well regarded. Graduates 
from the majority of non-elite universities have it much worse. 

Faced with a situation where millions of university-educated 
graduates are only able to land jobs that pay the equivalent of a 
factory worker's wage, China's authorities are scrambling to issue 
regulation they hope will alleviate the crisis. 

Thus, last month Beijing decided to restrict the number of future 
college enrolments. Local governments were also issued a notice 
asking them to "do a good job" in helping graduates find jobs and 
instructed to pay unemployment subsidies to those who have been 
unable to gain employment by September. 

China's authorities are aware that they are sitting on a potential 
social time bomb. The last major challenge to the Government's 
authority came in 1989 from a student movement that spread into the 
wider community. 

Since then the Government has tried to "co-opt" the educated "elite" 
who have by and large benefited from the economic reform process. 

The majority of anti-government protests in recent times have come 
from the rural poor and laid-off workers, sections who have been 
left behind in China's economic boom. These disadvantaged groups, 
however, lack the clout and voice of college-educated graduates. 

With social inequality much worse today than in 1989, Beijing is 
well aware that disaffection among the youth could conceivably once 
again fuse with wider discontentment. Improving the quality of 
university education and generating enough jobs to absorb the 
burgeoning number of graduates is thus a task of urgency. 










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