Chinese language youth flock to civil service, however sluggish financial system places ‘iron rice bowl’ jobs in danger


By Laurie Chen

BEIJING (Reuters) – A file 3.4 million younger Chinese language flocked to the civil service examination this 12 months, lured by the prospect of lifetime job safety and perks together with subsidised housing as an financial slowdown batters the non-public sector and youth unemployment stays excessive.

Applicant numbers, which surged by over 400,000 from final 12 months and have tripled since 2014, replicate the large demand for stability from disillusioned Gen Z Chinese language and the shortage of engaging choices within the non-public sector regardless that native governments are struggling to pay wages because of a fiscal disaster.

Klaire, a grasp’s pupil in Beijing, took the notoriously aggressive examination in early December, finding out for 9 hours a day and spending 980 yuan ($134) on on-line tutoring.

She cited social status and stability as main elements why she is simply making use of for presidency or state-owned enterprise (SOE) jobs. Klaire has additionally seen colleagues get laid off throughout a earlier tech internship.

“I solely wish to go the examination and never fear about what occurs subsequent,” mentioned the 24-year-old, withholding her surname for privateness causes.

“Regardless of personally realizing civil servants who have not been paid for months, I nonetheless utilized as a result of I do not want to make a number of cash.”

If she passes the examination, she can have an additional interview in addition to political background and bodily checks, with the ultimate end result anticipated round April.

Layoffs are uncommon in China’s civil service, incomes it the “iron rice bowl” moniker, although people may be dismissed for disciplinary violations.

“The present management has no intent of decreasing the dimensions of public sector employees, who’re the spine of regime stability,” mentioned Alfred Wu, affiliate professor at Nationwide College of Singapore.

Most civil service openings have an age restrict of 35 and provide subsidised housing and social insurance coverage, a serious attraction for graduates disillusioned by the paucity of personal sector job alternatives.

Youth unemployment charges, which fell barely in latest months, stay elevated in comparison with pre-pandemic figures as China’s financial system struggles to get well amid a chronic property sector disaster and frail consumption.

Many Gen Z Chinese language “really feel a robust sense of burnout and do not know what’s significant” after having their college years outlined by the pandemic and China’s financial slowdown, mentioned a Chinese language sociology professor on situation of anonymity.

As the current era of Chinese language graduates haven’t skilled the mass state sector layoffs of the 90s, many have an idealised view of presidency work, he mentioned, noting an apt summation in a social media meme: “Turning into a civil servant is the endpoint of the universe”.

WAGE WOES

Nonetheless, uncommon interviews with ten public sector staff throughout 4 Chinese language provinces paint a distinct image: widespread bonus reductions and pay cuts of as much as 30% this 12 months have prompted some to contemplate resigning, whereas native authorities austerity drives have led to sporadic workers cuts.

Some civil servants say they’ve been unpaid for months. Others survive on as little as 4,000 yuan ($550) month-to-month whereas supporting households and paying off loans. Many requested for anonymity to keep away from retribution.

Regardless of these apparent woes, excessive nationwide youth unemployment has fed robust demand for civil service roles, which have surged from 2019’s 14,500 to 39,700 this 12 months.

Katherine Lin stop her civil service job within the southern megacity of Shenzhen in July after her 15,000 yuan ($2000) wage dropped by 1 / 4, bonuses had been scrapped, and managers hinted at additional downsizing.

“Some departments selected to both lower salaries by 30% or hearth folks in response to cost-cutting insurance policies,” she mentioned. No less than three Shenzhen district-level bureaux had been merged and 9 staff dismissed this 12 months, public notices present.

In her housing bureau function, she dealt with an unprecedented variety of migrant employee protests final December, once they usually demand wages earlier than Chinese language New Yr.

One other civil servant in rural Guangdong province described his wage of 4,000 yuan ($550) as “steady poverty” after month-to-month bonuses of 1,000 yuan ($140) stopped in June.

In Shandong, civil servants complained on social media in September about being paid just one month per quarter, a part of a coverage known as “assure 4 (months’ wage), attempt for six”.

The State Council and Shenzhen authorities didn’t reply to faxed requests for remark.

DOWNSIZING PRESSURE

Beijing has lengthy confronted calls to reform its bloated state sector. Regardless of repeated downsizing campaigns, China’s civil service jobs swelled from 6.9 million in 2010 to eight million at the moment, with at the least an additional 31 million public staff equivalent to faculty and hospital employees who’ve fewer employment protections than civil servants.

Chinese language provinces have quietly lower tens of 1000’s of public sector positions since 2020, largely via hiring reductions and attrition.

© Reuters. FILE PHOTO: People walk past an office and shopping complex in Beijing, China April 10, 2024. REUTERS/Tingshu Wang/File Photo

Wage arrears are “systematic and common throughout the nation, and are not possible to resolve considerably within the brief time period,” mentioned a governance professor at an elite Chinese language college on situation of anonymity, including that this might improve corruption as officers complement their salaries via ideas and bribes, in addition to elevated administrative fines for residents.

“Probably the most urgent subject now’s social stability,” mentioned the professor. “Subsequently the lesser of two evils will trigger the growth of civil service hiring and the neglect of institutional reform.”

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