China’s ‘rotten-tail kids’ face rotten job prospects
College graduates are being forced to accept low-paid work as the unemployment crisis deepens
They have been called the “rotten-tail kids.” An underclass of overachievers struggling to find jobs amid China’s economic upheaval.
As the unemployment crisis deepens for those aged between 16 to 24, college graduates are being forced to accept low-paid work. Or rely on handouts from their parents.
On social media, the tagline “rotten-tail kids” has become the latest phenomenon.
“[It draws] parallels to the catchword ‘rotten-tail buildings’ for the tens of millions of unfinished homes that have plagued China’s economy since 2021,” the Reuters news agency reported last week.
Just another brick in the wall:
- Unemployment among the 100 million Chinese aged between 16 and 24 is still stubbornly high at 17%, despite the numbers being doctored.
- Last year, in another move to conceal the chaos that masquerades as economic policy, the ruling Communist Party suspended the data.
- The “youth unemployment” figures had soared to nearly 21%.
Overcapacity is leading to soaring bankruptcies.
The Economist
Between the lines: “[Still,] estimates put the true rate as high as 46.5%,” Edward Vickers, of Kyushu University in Japan, wrote in a commentary for East Asia Forum last week.
Delve deeper: China’s economy is suffering a crisis of confidence. “Manufacturers are going broke. Overcapacity is leading to soaring bankruptcies,” The Economist stated this month.
Big picture: Pessimism hangs over the country after the real estate collapse three years ago. Up to 70% of household wealth is held in property. Along with weak wage growth, domestic spending has shriveled.
China Factor comment: Moves by Beijing to flood global markets with high-tech exports have also backfired, triggering a tariff war with the United States and Europe. For the “rotten-tail kids,” the future looks particularly rotten.