In recent years, China has faced a significant shift in its economic landscape, a far cry from the booming growth that once characterized the world’s second-largest economy. This downturn has given rise to a generation of young people who feel increasingly disillusioned and disconnected from the workforce. Known as “rotten-tail kids,” these young adults symbolize the growing number of educated Chinese youth who cannot find stable employment and are becoming increasingly reluctant to participate in a job market that offers little hope for their future.
A Once-Booming Economy Now in Crisis
For decades, China’s rapid economic expansion fueled dreams of prosperity and upward mobility, especially for those who pursued higher education. However, in recent years, several factors have contributed to a dramatic slowdown in the country’s economic growth. Even before the COVID-19 pandemic, China’s economy was showing signs of cooling down, but the pandemic’s movement restrictions and lockdowns dealt a severe blow, not just to economic activity but to the overall confidence of consumers and businesses.
“Money just disappeared in a way that I didn’t see coming,” said Chloe Fu, a 26-year-old who works for an online legal services firm in the provincial capital of Changsha. Her sentiment echoes the fears of many young Chinese who are increasingly concerned about their financial security in an economy that seems to be stagnating. While Chinese officials have set a growth target of 5% for the end of 2024, many analysts believe the actual growth rate may be far below this figure. Some respected scholars even suggest that China’s economy might not be growing at all.
The Struggles of the Educated Youth
For the older generation now entering retirement, life remains relatively stable. With modest but sufficient pensions and homeownership, many can look forward to comfortable golden years. However, for today’s youth, the picture is drastically different. The dream of a middle-class lifestyle, including homeownership and a stable career, is increasingly out of reach.
“The inability to afford a house and a car with a middle-class income isn’t unique to China,” noted a report on the country’s economic conditions. “But in China, the knife twists harder because of the height from which the economy has fallen, particularly for educated youth.” This sentiment is reflected in the experience of Liu Wenning, a middle manager at a Beijing internet company. “If you’d asked me a few years ago, I’d be planning to get my girlfriend a nice piece of jewelry for [Chinese] Valentine’s Day,” Liu said. “We went to a movie and dinner instead. It still felt like splurging.”
This economic strain is not only impacting day-to-day living but is also reshaping career paths for many. Once seen as a gateway to prosperity, a college degree no longer guarantees a stable and well-paying job. The youth unemployment rate reached an alarming 21.3% in June 2023, leading Chinese authorities to halt the publication of youth unemployment data temporarily. Even after revising their calculations, the figures remain grim. In July 2024, the jobless rate for youth aged 16-24 spiked to 17.1%, highlighting the ongoing struggle for young people to find meaningful employment.
Desperation and the Rise of “Rotten-Tail Kids”
The term “rotten-tail kids” has become a buzzword on Chinese social media, drawing parallels to “rotten-tail buildings”—unfinished and abandoned construction projects that symbolize the broader economic woes. These young adults, armed with degrees from prestigious universities, find themselves in low-paying jobs far below their qualifications, living off their parents’ pensions, or opting out of the job market altogether. Some have become “full-time children,” relying entirely on their parents for support as they see no viable career opportunities.
The desperation of the job market has also made young people more vulnerable to scams. A particularly shocking incident involved a 19-year-old intellectually disabled man who was tricked into undergoing breast augmentation surgery by scammers who promised him a job at a cosmetic surgery clinic. The young man, who was desperately seeking work, was persuaded to take out a loan of 30,000 yuan ($4,180) to cover the cost of the surgery. His case sparked widespread outrage on social media, with many expressing disgust at how financial desperation is being exploited.
A Structural Problem with No Easy Solutions
The rise of “rotten-tail kids” is not just a symptom of a weak economy but a sign of deeper structural issues within China. The rapid expansion of university enrollment in the late 1990s, aimed at creating a more educated workforce, has led to an oversupply of graduates. With more young people entering the job market, the gap between the number of qualified candidates and the availability of high-paying jobs has widened. According to a study published by China Higher Education Research, this imbalance could persist until at least 2037.
Even students in high-demand fields like artificial intelligence are finding the job market increasingly competitive. Shou Chen, a third-year AI student at Beijing University of Posts and Telecommunications, has yet to secure an internship despite applying to numerous positions. “It may be worse,” she said, referring to the future job market. “After all, there will be more and more people in this field.”
Government Responses and the Uncertain Future
In response to the growing unemployment crisis, President Xi Jinping has repeatedly emphasized the importance of creating jobs for young people. The government has introduced various measures, including job fairs and supportive business policies, aimed at boosting hiring. However, these efforts have yet to make a significant impact. The economic challenges remain, driven by factors such as the ongoing property crisis and low consumer confidence.
Yun Zhou, an assistant professor of sociology at the University of Michigan, noted, “For many Chinese college graduates, better job prospects, upward social mobility, a sunnier life outlook—all things once promised by a college degree—have increasingly become elusive.” This disillusionment is creating a sense of despair among young people who once had high hopes for their future.
The outlook for China’s youth remains uncertain at best. The persistent high levels of unemployment and underemployment are not only economic issues but are also eroding the social contract that promised prosperity in exchange for hard work and education. Without significant changes to address these deep-rooted problems, the phenomenon of “rotten-tail kids” is likely to continue, leaving a generation questioning the value of their education and their place in society.
As China continues to grapple with its economic challenges, finding sustainable solutions to support its youth will be crucial for the country’s long-term stability and growth. For now, however, many young Chinese face an uncertain future, wondering if their dreams of a better life will ever become reality.
ACZ Editor Notes: The U.S. certainly has its share of “rotten-tail kids”, but perhaps the difference is in the structure of our economy that allows the diligent to find a place and prosper. The socialist nature of the Chinese economy does not allow as much for individual initiative and entrepreneurship, and those left out cannot solve their problems by simply working harder. The article notes that the older classes will have comfortable pensions, but this is only on paper. If the younger classes are not productive enough to support them, it does not matter what their pensions are, inflation will make them poor.
