The links between higher education and jobs in China

China has made remarkable economic progress in the past three decades. This has led to a dramatic rise in demand for highly educated workers and consequently, the rapid expansion of higher education. While a degree does not guarantee employment, better quality education more closely in tune with the labour market can address the issue of over-education. A paper from the UNESCO Centre for Comparative Education Research, in the UK, examines the links between China’s economic growth, its increasingly competitive labour market and its education system. Worldwide, education systems are expanding. More and more graduates with higher educational qualifications are entering the labour market and are finding it increasingly difficult to find good employment. They may even face unemployment. Such a situation has aknock-on effect on those with lower educational qualifications. The authors assess the current labour market situation for higher education graduates in China. They consider which groups are more likely to get jobs and whether higher education graduates are indeed finding it more difficult. They also look at the risk of over-education whereby young people feel pressured to obtain higher education degrees they may not actually require for their desired field of employment and which may not even help them get a job. Key findings include: • The higher a graduate’s level of education, the greater their chance of being employed and the higher their starting salary. • Graduates from reputable institutions have better chances of getting a job and starting with a higher salary. Private institution graduates are at a disadvantage. • Graduates who get information about jobs from their universities or colleges are more likely to be employed and earn a higher starting salary. • There is insufficient evidence that the expansion of higher education will worsen a graduate’s employment situation or lead to a decline in rates of return on higher education. • The problem of over-education in recent years is likely to be temporary. The report is optimistic about the future of China’s higher education and graduates’ contribution to the economy, suggesting that the difficulties faced by some graduates are temporary. However, the Ministry of Education must monitor the expansion of the education sector and encourage both its reform and stronger links with the labour market. Key recommendations include: • Higher education needs to improve in quality so over-education is less of a concern. • General education, the credit system (units of credit given for a course) and the system of second degrees should continue to be popular with students and employers. • Higher education needs to become more diversified so college and private higher education graduates are not at a disadvantage in their fields. • Information about potential employment needs to be developed and relayed to graduates via transparent, effective channels to assist them in their search for a job. • External, independent evaluation of the quality of higher education institutions is needed; employers will eventually use this, not the level of education, as a screening mechanism.