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Two groups with very different demands exist simultaneously in China’s job market: college graduates vying for whitecollar jobs and employers scrounging for skilled blue-collar workers. A saturation of college graduates has resulted in declining starting salary of many white-collar jobs, whilst a shortage of skilled laborers has prompted blue-collar salaries to rise.
Li Qiang, a 34-year-old college-educated professional, recently decided to become a skilled blue-collar worker. On July 30, he enrolled at the Laiwu Polytechnic Institute in Laiwu City, east China’s Shandong Province, to study welding and soldering.
After graduating from Qingdao University with a Master’s degree in literature in 2008, Li has worked a variety of jobs, such as a copywriter in a real estate company, a reporter at a local newspaper in Lianyungang City in Jiangsu Province, a secretary in a private school and a human resources manager at a privately owned catering business.
Despite Li’s master’s degree, these jobs earned him salaries of no more than 4,000 yuan ($654) a month. With a child to support and a home mortgage to pay, Li found his earnings difficult to live off and decided to turn to an alternative.
In his search for another new job, Li found that skilled electricians and welders could make twice as much as he was. After careful consideration, he decided to enroll in the Laiwu Polytechnic Institute’s welding and soldering program and become a blue-collar worker after graduation.
“With all the financial struggles in my life that I experienced as a white-collar worker, I thought I’d like to choose a new career path,” Li said.
Changing status
Between the 1950s and 70s, when China was still a planned economy, blue-collar workers were ranked high in the social hierarchy, ahead of farmers, business people and academics.
After the implementation of reform and the opening-up policy began about three decades ago, society began to value university education and entrepreneurship along with the establishment of a market economy, which brought the social status of physical laborers down.
“The nature of their jobs means blue-collar workers often work long hours. As a consequence, many people are unwilling to take such jobs,” said Shang Chongsheng, a sociology professor at Wuhan University in Hubei Province.
On the other hand, in the 1980s and early 1990s, a university degree usually guaranteed a decent job in large cities. But this is no longer the case following a rapid growth in university enrollment. Official data show that in 1977, only 3.4 percent of applicants were admitted into regular institutions of higher learning. In 1998, 1.08 million students, or 34 percent of those taking the national college entrance examination, were admitted into undergraduate programs.
The government began to dramatically expand university enrollment in 1999. In that year, 1.6 million students, or 48 percent of applicants, were accepted. Enrollment continued to rise all the way through to 2012, when 6.85 million students, or 75 percent of applicants, entered universities.
This year, 6.99 million students graduated from universities, 190,000 more than last year and they have to face a dismal job market.
Higher education consulting firm MyCOS Institute surveyed graduating college students between October 29, 2012 and April 10, 2013, and found that only 26 percent of those graduating with a master’s degree and 35 percent of those with a bachelor’s degree had signed employment contracts. These numbers were both lower than the 37 percent and 47 percent respectively in the same period last year.
While young people flock to universities, China is suffering a shortage of skilled bluecollar labors.
“In recent years, the employment rate of college graduates was 65 percent at its highest whereas the employment rate for bluecollar workers reached 95.7 percent at its lowest. This does not mean that education is useless, but it suggests that the structure of our economy and our employment system should undergo some adjustment,” said Lu Zheng, a research fellow with the Institute of Industrial Economics under the Chinese Academy of Social Sciences.
Akita Gear Co. Ltd. in southwest China’s Chongqing Municipality produces various types of motor gears. Every year, the company invests millions of dollars in upgrading equipment and developing new products. However, due to a lack of skilled workers, its planned transformation into a modern enterprise has been hindered.
Akita Gear has nearly 3,000 workers, most of whom are newly recruited migrant workers from the countryside with primary or high school education. Well-trained, skilled and experienced workers only account for a maximum of 10 percent of its employees, according to Li Dengping, vice general manager of the company.
Li said that last year, the company imported some computer numerical control (CNC) machine tools and a state-ofthe-art grinding machine in hopes to produce more higherend products, yet its workers did not possess adequate skills to operate them, which led to inconsistent product quality. The Chongqing Human Resources and Social Security Bureau recently surveyed 26 manufacturers of machinery, household electric appliances, automobiles and motors in the city. Sixty-eight percent of the companies said that they had difficulty recruiting skilled workers.
Zhang Shui, who runs a company in Beijing that repairs central air-conditioning systems, said that her company has been trying to recruit skilled workers all through summer, but has failed so far.
Zhang told The Beijing News that in refrigerating, heating and ventilation industries, senior technicians can make 200,000-300,000 yuan($32,680-49,020) a year, and even ordinary technicians earn 70,000-80,000 yuan ($11,438-13,072) yearly.
Back to school
The potentially higher income as a skilled blue-collar worker has begun attracting some university graduates to attend vocational schools in order to take skilled labor positions.
In response to the growing demand for vocational education coming from college graduates, the Wuhan Railway Bridge Secondary School (WRBSS) in Hubei has offered a two-year program tailored to college graduates since 2009.
According to the WRBSS, 97 percent of the students in the program have received job offers upon completing it, and many of them have become critical technical personnel at their workplaces.
Sun Chao, alongside another 55 college graduates, registered for the program in that year. Sun obtained a bachelor’s degree from the School of Information Management at Wuhan University in 2009. Upon graduation, however, he could not find a decent job. He made his living through doing odd jobs at some small companies in Wuhan, making a little more than 1,000 yuan ($163) monthly.
After he learned about the employment prospects of skilled blue-collar workers, he enrolled in the program at the WRBSS.
Now Sun is employed as a skilled builder by the China Railway No.5 Engineering Group Co. Ltd., a large state-owned company, at a starting monthly salary of 5,500 yuan ($899).
Sun told Beijing-based China Comment magazine that going to vocational school was an important choice that changed his life.
Li Shutao, Vice President of the WRBSS said that feedback from employers suggests that graduates from the program are very popular.
“Quite a number of students have become team leaders within two years of their graduation,” said Li. To the best of his knowledge, it usually takes 15 years for a worker without college degree to get promoted to a team leader position.
Going to vocational school is not a “step down” for college graduates, said Bie Dunrong, a professor at the Research Center of Higher Education Development of Xiamen University in Fujian Province.
He said that university is not the be all and end all of education, and that a college graduate can continue to receive other forms of education, including vocational training. “College education and vocational training can be complementary, with the former emphasizing theories and the latter equipping the student with practical skills.”
Li Qiang, a 34-year-old college-educated professional, recently decided to become a skilled blue-collar worker. On July 30, he enrolled at the Laiwu Polytechnic Institute in Laiwu City, east China’s Shandong Province, to study welding and soldering.
After graduating from Qingdao University with a Master’s degree in literature in 2008, Li has worked a variety of jobs, such as a copywriter in a real estate company, a reporter at a local newspaper in Lianyungang City in Jiangsu Province, a secretary in a private school and a human resources manager at a privately owned catering business.
Despite Li’s master’s degree, these jobs earned him salaries of no more than 4,000 yuan ($654) a month. With a child to support and a home mortgage to pay, Li found his earnings difficult to live off and decided to turn to an alternative.
In his search for another new job, Li found that skilled electricians and welders could make twice as much as he was. After careful consideration, he decided to enroll in the Laiwu Polytechnic Institute’s welding and soldering program and become a blue-collar worker after graduation.
“With all the financial struggles in my life that I experienced as a white-collar worker, I thought I’d like to choose a new career path,” Li said.
Changing status
Between the 1950s and 70s, when China was still a planned economy, blue-collar workers were ranked high in the social hierarchy, ahead of farmers, business people and academics.
After the implementation of reform and the opening-up policy began about three decades ago, society began to value university education and entrepreneurship along with the establishment of a market economy, which brought the social status of physical laborers down.
“The nature of their jobs means blue-collar workers often work long hours. As a consequence, many people are unwilling to take such jobs,” said Shang Chongsheng, a sociology professor at Wuhan University in Hubei Province.
On the other hand, in the 1980s and early 1990s, a university degree usually guaranteed a decent job in large cities. But this is no longer the case following a rapid growth in university enrollment. Official data show that in 1977, only 3.4 percent of applicants were admitted into regular institutions of higher learning. In 1998, 1.08 million students, or 34 percent of those taking the national college entrance examination, were admitted into undergraduate programs.
The government began to dramatically expand university enrollment in 1999. In that year, 1.6 million students, or 48 percent of applicants, were accepted. Enrollment continued to rise all the way through to 2012, when 6.85 million students, or 75 percent of applicants, entered universities.
This year, 6.99 million students graduated from universities, 190,000 more than last year and they have to face a dismal job market.
Higher education consulting firm MyCOS Institute surveyed graduating college students between October 29, 2012 and April 10, 2013, and found that only 26 percent of those graduating with a master’s degree and 35 percent of those with a bachelor’s degree had signed employment contracts. These numbers were both lower than the 37 percent and 47 percent respectively in the same period last year.
While young people flock to universities, China is suffering a shortage of skilled bluecollar labors.
“In recent years, the employment rate of college graduates was 65 percent at its highest whereas the employment rate for bluecollar workers reached 95.7 percent at its lowest. This does not mean that education is useless, but it suggests that the structure of our economy and our employment system should undergo some adjustment,” said Lu Zheng, a research fellow with the Institute of Industrial Economics under the Chinese Academy of Social Sciences.
Akita Gear Co. Ltd. in southwest China’s Chongqing Municipality produces various types of motor gears. Every year, the company invests millions of dollars in upgrading equipment and developing new products. However, due to a lack of skilled workers, its planned transformation into a modern enterprise has been hindered.
Akita Gear has nearly 3,000 workers, most of whom are newly recruited migrant workers from the countryside with primary or high school education. Well-trained, skilled and experienced workers only account for a maximum of 10 percent of its employees, according to Li Dengping, vice general manager of the company.
Li said that last year, the company imported some computer numerical control (CNC) machine tools and a state-ofthe-art grinding machine in hopes to produce more higherend products, yet its workers did not possess adequate skills to operate them, which led to inconsistent product quality. The Chongqing Human Resources and Social Security Bureau recently surveyed 26 manufacturers of machinery, household electric appliances, automobiles and motors in the city. Sixty-eight percent of the companies said that they had difficulty recruiting skilled workers.
Zhang Shui, who runs a company in Beijing that repairs central air-conditioning systems, said that her company has been trying to recruit skilled workers all through summer, but has failed so far.
Zhang told The Beijing News that in refrigerating, heating and ventilation industries, senior technicians can make 200,000-300,000 yuan($32,680-49,020) a year, and even ordinary technicians earn 70,000-80,000 yuan ($11,438-13,072) yearly.
Back to school
The potentially higher income as a skilled blue-collar worker has begun attracting some university graduates to attend vocational schools in order to take skilled labor positions.
In response to the growing demand for vocational education coming from college graduates, the Wuhan Railway Bridge Secondary School (WRBSS) in Hubei has offered a two-year program tailored to college graduates since 2009.
According to the WRBSS, 97 percent of the students in the program have received job offers upon completing it, and many of them have become critical technical personnel at their workplaces.
Sun Chao, alongside another 55 college graduates, registered for the program in that year. Sun obtained a bachelor’s degree from the School of Information Management at Wuhan University in 2009. Upon graduation, however, he could not find a decent job. He made his living through doing odd jobs at some small companies in Wuhan, making a little more than 1,000 yuan ($163) monthly.
After he learned about the employment prospects of skilled blue-collar workers, he enrolled in the program at the WRBSS.
Now Sun is employed as a skilled builder by the China Railway No.5 Engineering Group Co. Ltd., a large state-owned company, at a starting monthly salary of 5,500 yuan ($899).
Sun told Beijing-based China Comment magazine that going to vocational school was an important choice that changed his life.
Li Shutao, Vice President of the WRBSS said that feedback from employers suggests that graduates from the program are very popular.
“Quite a number of students have become team leaders within two years of their graduation,” said Li. To the best of his knowledge, it usually takes 15 years for a worker without college degree to get promoted to a team leader position.
Going to vocational school is not a “step down” for college graduates, said Bie Dunrong, a professor at the Research Center of Higher Education Development of Xiamen University in Fujian Province.
He said that university is not the be all and end all of education, and that a college graduate can continue to receive other forms of education, including vocational training. “College education and vocational training can be complementary, with the former emphasizing theories and the latter equipping the student with practical skills.”