According to the latest data from China’s National Bureau of Statistics, the total number of employed urban residents in China’s cities fell from about 180 million people in 2013 to 170 million people annually between 2019 and 2021. At the same time, the number of public sector employees, including education, public administration, social security, and social organizations, increased from about 33 million to about 40 million, and the proportion of public sector employees in the total employment population increased from about 18% to 23%.

The number of people applying for civil service positions in China has also increased significantly, from nearly 1.37 million in 2013, with an average competition ratio of 66:1, to 2.5 million this year, with an average competition ratio of 60.5:1, a new high in nearly 10 years. The number of people applying for civil service positions is expected to increase by 500,000 between 2021 and 2023.

The Chinese government claims that it hires approximately 200,000 civil servants annually, but in February 2023, news emerged that several provinces planned to expand civil service recruitment by more than 50%, including Gansu, Yunnan, Guangxi, and Inner Mongolia, with Gansu’s recruitment scale reaching 79.7% and Yunnan’s almost 60%.

China’s National Bureau of Statistics has not released any statistics on the total number of financially supported personnel since 2008, but it is estimated that the number of civil servants and public sector employees has increased year by year, with estimates ranging from over 60 million to 80 million people, meaning that on average, 10 to 30 Chinese people support one civil servant. In 2016, China’s Communist Party media, People’s Daily, reported that China had about 50 million financially supported personnel, with an average of 11 Chinese people supporting one civil servant, citing Professor Zhu Lijia of the National School of Administration.

Source: Radio Free Asia, April 24, 2023
https://www.rfa.org/cantonese/news/cn-public-04242023115737.html

China is expected to see a record number of college graduates in 2023, with an estimated 11.58 million students graduating from national universities. In response, China’s central and local governments are implementing measures to create employment opportunities for graduates. Data shows that the proportion of fresh graduates among the total applicants for the National Civil Service Examination has risen from 39.17% in 2019 to 67.4% in 2023.

A recent paper published by a professor and doctoral student at East China University of Science and Technology analyzed the impact of the post-epidemic era on job security. The study found that high-risk workers were experiencing high rates of job loss and pay cuts, highlighting the vulnerability of modern life and reinforcing traditional concepts of occupation. This societal shift has contributed to a growing faith in the government sector among young people, who see it as a stable and secure workplace amidst an abnormal job market characterized by overtime culture, fierce competition, and unstable income.

In 2023, nearly 2.6 million people applied to take the national civil service examination, representing a 25% increase from the previous year. The ratio of the number of successful exam takers to the number of available positions reached 70:1.

However, some experts are concerned about the long-term impact of an increasing number of graduates entering government employment. Tian Xianpeng, an associate professor at Jiangnan University, warned that the government can only provide a limited number of positions, and the influx of graduates is likely to intensify competition for these positions.

Li Chao, chief economist of Zheshang Securities, pointed out that the fundamental issue contributing to high youth unemployment is the mismatch between the education system and market demands. In reality, the labor market and education system are not sufficiently aligned to ensure a strong match between graduates’ skills and market needs.

Source: news.china.com, February 27, 2023
https://news.china.com/socialgd/10000169/20230227/44549288_all.html

China’s central government has issued a one-time subsidy of 10 billion yuan (US$1.45 billion) to actual grain farmers in order to support spring farming and stimulate the enthusiasm of farmers to plant crops. According to official data, China has approximately 500 million farmers, including 300 million rural migrant workers and fewer than 200 million permanent residents. This is the first time the government has offered a one-time financial subsidy to farmers. The subsidy targets those who actually grow crops, including those who use their own contracted land, large-scale households, family farms, farmers’ cooperatives, agricultural enterprises, and individuals and organizations that provide full-cycle socialized services for grain cultivation and harvesting.

However, some agricultural experts claim that China’s food security situation is severe and this subsidy is not enough to solve the problem. Yang Hua, a retired lecturer at Yunnan University, claimed that the subsidy would only provide 66 yuan (US $9.60) per person to approximately 150 million grain farmers, which would only be enough to purchase 20 kilograms of rice. Meanwhile, Cai Shenkun, a senior financial commentator, stated that, in recent years, there has been a significant shortage of rural labor in China. The phenomenon of farmland abandonment is very serious, particularly in coastal areas. In this situation, farmers have no incentive to grow crops since the more they grow, the more money they lose. As a result, the government must increase grain prices to support farmers and ensure food security.

Additionally, Chinese customs data for the first two months of 2023 revealed that the price of grain and of edible vegetable oil imports has risen significantly, indicating a further strain on China’s food security.

Source: Radio Free Asia, April 17, 2023
https://www.rfa.org/mandarin/yataibaodao/jingmao/gt2-04172023050715.html

In China, a growing number of workers are resorting to the food delivery industry for employment as they struggle to secure jobs elsewhere. However, the industry is facing increasing competition as the surplus of delivery workers makes it difficult for individuals to secure enough orders to earn a decent income. Despite recruitment efforts by platforms such as Meituan, there are now more delivery workers than there is demand for their services. As a result, workers are facing intense competition and low earnings, with many struggling to make ends meet. The challenging working conditions were highlighted in a recent Chinese media report that described the cramped living quarters and difficult financial situation faced by many delivery workers. While food delivery work has been a lifeline for struggling workers, the long-term sustainability of the industry as a source of employment is now being questioned.

Source: World Journal (Taiwan), April 14, 2023
https://www.worldjournal.com/wj/story/121474/7099432

Amid financial pressures, many local governments in China are reducing the number of non-official personnel to cut down on expenses. This move follows the release of the “Plan for the Reform of Party and State Institutions” by the Chinese Communist Party and the State Council in March 2021, which aimed to streamline personnel structures. Cities such as Harbin, Shiyan, Chuxiong, and Huizhou have started reducing non-official staff. Shiyan city in Hubei province reportedly saved around RMB 15 million (US$2.2 million) after removing 326 non-official personnel, which accounted for around 9 percent of total non-official staff. Chuxiong plans to reduce non-official personnel by 265, or around 6.5 percent, which would lead to a decrease of approximately RMB 3.6 million (US$0.5 million) in government expenditure.

The reduction in non-official personnel is expected to reduce the financial burden on local governments, including salaries, social security contributions, and medical insurance costs. Furthermore, since non-official personnel are not included in the official headcount, their qualifications and abilities can be uneven and they may not be able to handle all tasks. Therefore, cutting non-official staff could allow for more experienced personnel to handle affairs, leading to better government efficiency.

Source: Central News Agency (Taiwan), April 11, 2023
https://www.cna.com.tw/news/acn/202304110140.aspx