Recent data indicates a resurgence in the preference for joining the public sector by young Chinese individuals, amidst changes in China's economic landscape. State-owned companies in China have experienced growth in comparison to private firms, with the appeal of job security and government assistance prompting many to favor employment in state-owned firms. The shift towards state-owned enterprises has emerged in the wake of disruptions caused by the COVID-19 pandemic and China's era of slowing economic growth, which has led to increased worker insecurity and boosted the attractiveness of the once-staid public sector.
While nonstate enterprises had previously dominated China's corporate sector, the effects of COVID-19 have prompted a notable shift, leading to a decline in the private sector's share as the state's portion of the economy has risen. By mid-year, state-owned enterprises represented 40% of China’s corporate sector by market capitalization, with state-owned firms accounting for 61% of the country’s 100 largest listed companies.
The annual civil service exam in China mirrors the growing preference for public-sector jobs, as evidenced by a record number of 2.6 million applicants in the most recent test, double the number from 2019. This trend reflects a shift in perceptions of economic stability, as individuals increasingly opt for public-sector employment to ensure job security in the face of China's slowing economy.
Moreover, recent college graduates and students have shown a strong inclination towards state-sector employment, as highlighted by the findings of a government-run Chinese College Student survey and analysis by scholars at Stanford University and in China. This preference for public-sector positions has emerged amid record-high youth unemployment and concerns about the accuracy of the official jobless rate.
However, the rising demand for public-sector jobs does not align with the growth of state-dominated industries, such as infrastructure and real estate, which may not cater to the career aspirations of many young and educated individuals. Despite this mismatch, the challenging job market has led many young graduates to display a willingness to accept positions in the public sector, even if they are not aligned with their educational background or career preferences.
In summary, the evolving economic landscape in China has fueled a resurgence of the public sector as a favored employment option among young individuals, driven by the desire for job security in the face of economic uncertainty.