The Struggles of Overqualified Youth in China: From Finance Graduates to Waiters and Extras
China, once a symbol of rapid economic growth, is now facing an economic slowdown that has left millions of young, educated people struggling to find jobs in their fields. As the job market shrinks, the gap between highly qualified graduates and available opportunities continues to widen.
In an increasingly competitive labor market, many university graduates are finding themselves taking on jobs that don't require their advanced education, ranging from waiters to film extras, laborers to delivery drivers. This article delves into the new reality faced by young Chinese professionals, illustrating the disconnect between their academic achievements and the current state of the labor market.
The Struggling Graduate: When Dreams Don’t Align with Reality
Sun Zhan, a 25-year-old with a master’s degree in finance, had dreams of securing a high-paying position in investment banking. However, after months of fruitless job hunting, he found himself working as a waiter in a hotpot restaurant in Nanjing, a far cry from his aspirations.
“I looked for a job in finance but didn’t find anything good,” says Sun, who had hoped to secure a high-paying role that would allow him to “make a lot of money.” This shift from high hopes to harsh reality is becoming increasingly common in China, as the country’s economic slowdown continues to affect major sectors such as real estate, manufacturing, and technology. While China churns out millions of university graduates each year, there simply aren’t enough high-level jobs to meet the demand.
The issue is compounded by a youth unemployment rate that had been nudging 20% before the measurement method was altered. In August 2024, the rate stood at 18.8%, and as of November, it had dropped slightly to 16.1%. However, the stark reality for many young professionals is that they are unable to find work in their chosen fields.
University Graduates in Unconventional Jobs
The case of Wu Dan, a 29-year-old with a finance degree from the Hong Kong University of Science and Technology, further highlights the growing trend of overqualified youth taking jobs far below their qualifications. Wu initially worked in a futures trading company in Shanghai, specializing in agricultural products. However, despite receiving offers from private equity firms, she was dissatisfied with the conditions and turned her attention to sports medicine.
“I thought working in finance would suit me, but now I feel that the life working in the investment world doesn't suit me at all,” she admits. Wu has since started training in sports injury massage, though her family is far from supportive of her decision. They couldn’t understand why she chose a physically demanding job that paid far less than her previous position in finance. But Wu is determined to continue with her new career path, even if it meant earning less money.
The dissatisfaction with the traditional job market has led many graduates to rethink what constitutes a "good job." Professor Zhang Jun, a scholar from the City University of Hong Kong, notes that while many students pursued higher degrees to improve their prospects, the reality of a tough job market quickly set in. “The job market has been really tough,” she explains, noting that some sectors which once employed many graduates, including tech companies, are now laying off staff and offering substandard conditions.
Film Extras: The New Job for Many Graduates
As traditional career paths become more elusive, some university graduates are finding work in the entertainment industry, specifically as film extras. Hengdian, China's film production hub, located south-west of Shanghai, is seeing an influx of overqualified youth seeking employment as extras in big-budget films.
Wu Xinghai, a 26-year-old who studied electronic information engineering, has been working as an extra on film sets. “I mainly stand beside the protagonist as eye candy,” he says with a laugh, acknowledging that while the work doesn’t pay much, it offers flexibility and an opportunity to work in the entertainment industry temporarily.
Film extra work is often seen as a temporary fix while graduates wait for better opportunities. Many young people come to Hengdian with no intention of staying long-term but are willing to take what they can get while they navigate the uncertain job market.
Changing Career Expectations: The Reality of China's Economic Slowdown
The shifting expectations of Chinese graduates are a reflection of the broader economic slowdown. As industries such as real estate and technology face challenges, the employment opportunities available to university graduates have diminished significantly. Many recent graduates, particularly those with specialized degrees in fields like finance, engineering, or physics, are discovering that their education does not guarantee them a high-paying, prestigious job.
The increasing rate of underemployment among university graduates signals a larger problem in China’s labor market, where education is no longer a clear path to success. Young people are being forced to readjust their career expectations and rethink what constitutes a “good job.” The combination of a slow economy, high graduate output, and industry instability has led many to reconsider their job options and find alternative career paths that don’t necessarily align with their original goals.
Some graduates are turning their attention to entrepreneurship. For instance, Sun Zhan, despite his job as a waiter, harbors ambitions of eventually owning his own restaurant. By learning the ins and outs of the restaurant business while working as a waiter, he hopes to achieve financial success in the future. “If I end up running a successful business, my critics will have to change their tune,” he says.
A New Reality for China’s Graduates
As China's job market continues to struggle under economic pressure, more and more young people are finding themselves in jobs that don’t match their education or skills. This new reality is forcing Chinese graduates to reconsider their career expectations, leading to a shift in how they view success. Whether it’s taking on low-paying, manual labor jobs or working as extras in films, many are adapting to the challenges of a job market that no longer offers the same opportunities as before.