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China’s youth compete for stable gov’t jobs in unstable economic times

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A good result on China’s annual national civil service exam is a requirement for any Chinese candidate who wants to be considered for the tens of thousands of vacant civil service jobs that the government seeks to fill every year.

Many of the vacant positions are reserved for recent Chinese graduates.

When 22-year-old recent graduate Du Xin sat down for the exam in December last year at a test centre in the city of Shijiazhuang in China’s Hebei province, she had been studying vigorously for six months.

Some applicants even hire tutors to prepare them for the exam.

Candidates are tested broadly on their general knowledge and analytical skills while in more recent years they have also been tested on their grasp of “Xi thought” – Chinese President Xi Jinping’s ideology and vision for China.

Despite her months of preparation, Du knew that the odds that her test result would bring her closer to a government job were slim.

As she began the exam, so, too, did millions of other Chinese youths across hundreds of Chinese cities.

“The competition is fierce,” Du told Al Jazeera.

That year the chance of securing a civil service position was 70 to one.

A candidate makes last-minute preparations to sit for the Chinese civil service examinations, which nationwide, millions of candidates sit to qualify for thousands of job vacancies in the government, in Hefei, east China’s Anhui province in 2011 [File: AFP]

Therefore, Du was surprised and thrilled when she learned that she did well on the exam and subsequently landed a job as an organiser at the local office of the Chinese Communist Party (CCP) in Shijiazhuang.

This year, the competition looked to be even more fierce as the number of candidates sitting down for the exam at the end of November surpassed three million for the first time.

The number of vacant government positions has not kept up, lowering the odds of securing a job like Du’s from 70 to 1 to 77 to 1, according to the state-run Global Times.

Du is not surprised by the high number of applicants.

“I think a lot of young people in China really want a stable job right now,” she said.

Candidates prepare to take China’s national civil service exam in a university in Nanjing, east China’s Jiangsu province, in 2013 [File: AFP]

Job security is an ‘iron rice bowl’

The appeal of stable employment was what drew Du to the civil service exam last year at a time of economic turmoil in China.

“I felt a bit lost after I finished my graduate studies, I didn’t know what I wanted to do,” she told Al Jazeera. “But I knew I wanted a job where I could feel secure and have free time, and that made me interested in government work.”

Although employment in China’s civil service rarely pays as well as comparable employment in the Chinese private sector, there are other benefits. Civil servants usually have access to better medical insurance, a preferential pension plan, consistent bonus pay-outs and secure lifetime employment.

The security that comes with a public position has given rise to the nickname, “iron rice bowl”.

Iron rice bowls are coveted by some traditional Chinese parents for their children – not just for stability but because some see obtaining such jobs as a recognition of excellence by the state.

Candidates queueing to take the national examination for admissions to the civil service in Wuhan in China’s central Hubei province in 2021 [File: AFP]

An important aspect of life as a civil servant for Du is the working hours.

“I work from 9am to 5pm, and I don’t have to work on weekends,” Du said.

Many of Du’s friends in the private sector work the 996 system – 9am to 9pm, 6 days a week.

“Compared to them, I have a lot more free time to enjoy my hobbies,” she said.

Yang Jiang was also not surprised by the record number of applicants for China’s civil service exam this year.

Jiang is a scholar of China’s economic policies and a senior researcher at the Danish Institute for International Studies.

The number of applicants has been growing quickly in recent years, and according to Jiang, one reason is the equally high number of Chinese graduates entering the job market.

In 2023 alone, almost 11.6 million Chinese finished their studies, the highest number ever.

But the overarching reason for the high number of civil service exam applicants is the Chinese economy, Jiang told Al Jazeera.

“The economic situation is uncertain in China,” she said.

Candidates arrive for China’s national civil service exam in a university in Nanjing, east China’s Jiangsu province, in 2013 [File: AFP]

The Chinese economy has been struggling to reach the growth rates of earlier years, the housing market is in the deepest slump in decades and foreign direct investment struck a deficit in the July-September period of 2023 for the first time recorded.

For Chinese graduates, circumstances look particularly grim: youth unemployment hit a record high of 21.3 percent in June before the authorities stopped publishing the numbers.

“The private sector in particular has seen a lot of layoffs in the economic downturn,” Jiang explained.

“That has naturally made more Chinese graduates look towards the public sector for the sort of job security that is currently missing in the private sector,” she said.

‘They can’t make us disappear’

Like Du, 23-year-old Chris Liao from Guangdong province in southern China graduated last year with a master’s degree in public administration. He also signed up for the civil service exam.

“I didn’t make it past the written exam,” he told Al Jazeera.

Afterwards, Liao was unable to find a job within his field of study, forcing him to work as a cook for a while before he moved back with his parents outside Guangzhou, the largest metropolis in Guangdong.

He is now among the millions of unemployed young people in China.

“I feel like life got really difficult when COVID hit and ever since it hasn’t stopped getting difficult,” he explained.

Liao believes that the government’s COVID-19 strategy is the cause of many of the economic problems plaguing China today.

“So it is the government’s responsibility to do more to make the situation better,” he said.

According to observers, the large number of unemployed youth in China’s major cities is a significant cause for concern for the party-state.

One Communist organisation in Liao’s Guangzhou even presented a plan in March about sending unemployed youths to the countryside to foster rural development.

Such a plan hearkens back to Chairman Mao Zedong’s Cultural Revolution of the 1960s and 1970s during which time millions of urban youths were sent to the countryside in a period of political and social upheaval that caused the deaths of at least two million people.

In January, President Xi also spoke about Chinese youths “revitalising” the countryside.

Liao does not believe that such plans are realistic in modern times, however.

“They can’t make us disappear into the countryside,” he said.

“There are too many of us, and we are growing in number.”

 

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Energy stocks help lift S&P/TSX composite, U.S. stock markets also up

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TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.

The S&P/TSX composite index was up 34.91 points at 23,736.98.

In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.

The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.

The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.

The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.

This report by The Canadian Press was first published Sept. 17, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Canada’s inflation rate hits 2% target, reaches lowest level in more than three years

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OTTAWA – Canada’s inflation rate fell to two per cent last month, finally hitting the Bank of Canada’s target after a tumultuous battle with skyrocketing price growth.

The annual inflation rate fell from 2.5 per cent in July to reach the lowest level since February 2021.

Statistics Canada’s consumer price index report on Tuesday attributed the slowdown in part to lower gasoline prices.

Clothing and footwear prices also decreased on a month-over-month basis, marking the first decline in the month of August since 1971 as retailers offered larger discounts to entice shoppers amid slowing demand.

The Bank of Canada’s preferred core measures of inflation, which strip out volatility in prices, also edged down in August.

The marked slowdown in price growth last month was steeper than the 2.1 per cent annual increase forecasters were expecting ahead of Tuesday’s release and will likely spark speculation of a larger interest rate cut next month from the Bank of Canada.

“Inflation remains unthreatening and the Bank of Canada should now focus on trying to stimulate the economy and halting the upward climb in the unemployment rate,” wrote CIBC senior economist Andrew Grantham.

Benjamin Reitzes, managing director of Canadian rates and macro strategist at BMO, said Tuesday’s figures “tilt the scales” slightly in favour of more aggressive cuts, though he noted the Bank of Canada will have one more inflation reading before its October rate announcement.

“If we get another big downside surprise, calls for a 50 basis-point cut will only grow louder,” wrote Reitzes in a client note.

The central bank began rapidly hiking interest rates in March 2022 in response to runaway inflation, which peaked at a whopping 8.1 per cent that summer.

The central bank increased its key lending rate to five per cent and held it at that level until June 2024, when it delivered its first rate cut in four years.

A combination of recovered global supply chains and high interest rates have helped cool price growth in Canada and around the world.

Bank of Canada governor Tiff Macklem recently signalled that the central bank is ready to increase the size of its interest rate cuts, if inflation or the economy slow by more than expected.

Its key lending rate currently stands at 4.25 per cent.

CIBC is forecasting the central bank will cut its key rate by two percentage points between now and the middle of next year.

The U.S. Federal Reserve is also expected on Wednesday to deliver its first interest rate cut in four years.

This report by The Canadian Press was first published Sept. 17, 2024.

The Canadian Press. All rights reserved.

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Federal money and sales taxes help pump up New Brunswick budget surplus

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FREDERICTON – New Brunswick‘s finance minister says the province recorded a surplus of $500.8 million for the fiscal year that ended in March.

Ernie Steeves says the amount — more than 10 times higher than the province’s original $40.3-million budget projection for the 2023-24 fiscal year — was largely the result of a strong economy and population growth.

The report of a big surplus comes as the province prepares for an election campaign, which will officially start on Thursday and end with a vote on Oct. 21.

Steeves says growth of the surplus was fed by revenue from the Harmonized Sales Tax and federal money, especially for health-care funding.

Progressive Conservative Premier Blaine Higgs has promised to reduce the HST by two percentage points to 13 per cent if the party is elected to govern next month.

Meanwhile, the province’s net debt, according to the audited consolidated financial statements, has dropped from $12.3 billion in 2022-23 to $11.8 billion in the most recent fiscal year.

Liberal critic René Legacy says having a stronger balance sheet does not eliminate issues in health care, housing and education.

This report by The Canadian Press was first published Sept. 16, 2024.

The Canadian Press. All rights reserved.

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