As graduation season approaches, the sudden announcement by the Chinese authorities to provide subsistence allowances to unemployed college graduates has sparked heated discussions. Analysts believe that under the backdrop of the China-US trade war, a wave of unemployment is hitting the mainland, with violence becoming more rampant. The move by the Communist Party of China (CPC) is seen as a measure to maintain political stability and ensure regime longevity.
Recently, the General Office of the CPC Central Committee and the General Office of the State Council issued an opinion on “Building a High-quality Employment Service System for College Graduates” (“Opinion”). The opinion stipulates that unemployed college graduates who meet the conditions will be included in the minimum living guarantee, and the employment situation of college graduates within 2 years of leaving school will be continuously monitored.
The opinion was formulated on November 3, 2024, but was only made public by Xinhua News Agency on April 8 and published in the policy section of the central government’s official website. Many media outlets highlighted the aspect of including “unemployed college graduates in the minimum living guarantee” in their headlines, leading to some articles being deleted, causing initial confusion and disbelief regarding the news.
Many netizens humorously commented on the situation, expressing disbelief at the idea of college graduates being able to apply for subsistence allowances directly after graduation. The juxtaposition of “college graduates” and “subsistence allowance” led to satire and criticism online, with some questioning the value of a university degree and suggesting that tuition fees should be refunded.
According to the opinion, the Ministry of Human Resources and Social Security will take the lead in formulating employment policies for college graduates, with local party committees and governments, as well as universities, strengthening organizational coordination under the direct deployment of key officials to ensure implementation.
However, there is skepticism among the public, with expectations that there will be various thresholds for eligibility. Some criticized that the allocation of these subsidies may be more difficult than obtaining scholarships and raised concerns about the distribution of funds to connected individuals.
The latest data shows that the scale of the 2025 college graduate population is expected to reach 12.22 million. A report released by the well-known Chinese online recruitment platform “Zhaopin” revealed that the employment rate of Chinese college graduates in 2024 was 55.5%.
In comparison, the employment rate of Japanese university graduates in the spring of 2024 reached 98.1%.
In recent years, Chinese college graduates have faced numerous challenges, from the impact of the US-China trade war to the economic repercussions of the COVID-19 pandemic. With the onset of the second phase of the trade war and uncertainties in the job market, the prospects for future employment are becoming increasingly difficult.
The high youth unemployment rate in China has led the official data to be temporarily withheld by the authorities. The difficulty faced by university graduates in finding employment has reached alarming levels. A video recently circulated online featured a 2025 Master of Arts graduate expressing anxiety over the inability to secure a job after submitting thousands of resumes and attending various job fairs.
Previously reported in March, the civil service examination had over 5.3 million applicants competing for 166,000 positions. In one instance, a bank in Jiangsu had 30 job openings and received 10,000 applicants.
With both quality jobs and low-end positions scarce, the impact of the trade war has resulted in factory closures, order cancellations, and a decrease in job opportunities for workers. This has created a challenging situation even in informal labor markets like garment manufacturing villages in Guangzhou.
Some observers view the provision of subsistence allowances to graduates as a measure for maintaining social stability. The violent incidents involving the 2024 graduates have raised concerns, leading to the necessity of providing a safety net for this vulnerable group. However, doubts remain regarding the actual implementation and accessibility of these allowances, with skepticism about the distribution of funds.
Amid these circumstances, the introduction of the university graduate unemployment subsistence plan by the CPC is seen as a strategic move to address growing social unrest stemming from rising youth unemployment rates. The aim is to alleviate public discontent amid escalating tensions with the United States, presenting the policy as a means to cushion the impact of economic challenges.