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Work More Important Than Degree: Young People in China Flock to Vocational Schools

| Source: CNBC Translated from Indonesian | Social Policy
Work More Important Than Degree: Young People in China Flock to Vocational Schools
Image: CNBC

Education preferences in China are shifting significantly. A growing number of high-scoring students in the national university entrance examination are choosing vocational pathways over traditional academic universities.

According to reporting from the South China Morning Post, many students now view vocational education as offering a faster and more measurable employment trajectory compared to general bachelor’s degrees.

The case of Lin Gangming exemplifies this trend. His entrance examination score was high enough for an elite university, but he chose Shenzhen Polytechnic University, a vocational institution focused on technical training. Such decisions are becoming increasingly common in China’s industrial cities, which require large numbers of skilled workers.

Job market competition is shaping student decisions. In 2025, the number of Chinese higher education graduates reached approximately 12.22 million, creating significant pressure in the labour market. According to reporting from Sixth Tone, companies are increasingly weighing practical skills more heavily than academic background alone.

According to Gao Shanchuan from Fudan University, the relationship between academic credentials and income is no longer as strong as it once was. Students are calculating employment prospects more realistically, viewing educational programmes that provide quick access to employment as more rational.

Employer demand for master’s degree graduates fell from 20.3% in 2024 to 17.4% in 2025, whilst demand for vocational graduates rose from 8.5% to 11%. Vocational graduates recorded the highest employment acceptance rate in 2024 compared with other educational groups.

Government policy is accelerating this shift. The national education development plan for 2024-2035 designates vocational education as a priority. The programme includes increased funding, construction of new facilities, and expansion of vocational bachelor’s programmes. The government has positioned technical training as part of its industrialisation strategy.

In industrial cities such as Wuhan, the relationship between vocational campuses and companies is evident. Educational programmes are developed in partnership with industry. Students undertake internships from the beginning of their studies. Some campuses record employment placement rates exceeding 98%.

The early childhood education programme at Wuhan City Vocational College exemplifies this approach. Students undergo intensive three-year training with an emphasis on field practice. Graduates typically begin work immediately in kindergartens with starting salaries of approximately 3,500-4,000 yuan per month.

In the engineering sector, the mechatronics programme in Xiangyang is designed to meet the needs of the local automotive industry. Students train using production equipment and participate in skills competitions. Graduates estimate starting salaries of around 6,000-8,000 yuan per month, approaching or exceeding the regional income average.

Companies perceive differences in the character of vocational and university graduates. Recruiters in Wuhan describe vocational graduates as better prepared for technical work such as video content production or equipment operation. They adapt quickly to work procedures.

However, the vocational pathway has certain limitations. In some state-owned enterprises, managerial positions are still predominantly awarded to traditional university graduates. Bachelor’s degrees remain influential for long-term career progression.

Youth Unemployment Rates

Latest data from the National Bureau of Statistics recorded youth unemployment in China at 16.5% in December 2025.

Unemployment among non-student youth aged 16-24 years declined slightly since August 2025, when it reached a peak of 18.9% (based on revised methodology). However, the decline of several percentage points following the university graduation season each June is a normal seasonal pattern. The December 2025 report actually showed a slight increase compared with the previous year, indicating that youth unemployment has persisted at a concerning level.

In 2018, youth unemployment stood at approximately 10%, the first year the government published data by age group.

This figure subsequently increased due to the Covid-19 pandemic and the property crisis, reaching 21.3% in June 2023. Subsequently, data publication was suspended for five months for methodology improvements. The revised series no longer includes students seeking part-time or temporary work.

When publication resumed in December 2023, the unemployment figure dropped sharply to 14.9%, largely due to the methodological change. Over the past two years, the figure has ranged from 14-18%. With overall unemployment at around 5%, it is clear that youth unemployment remains a significant problem in China.

Skills and Employment Mismatch

Nippon.com reported that one important cause of high youth unemployment is the surge in higher education graduates. In 2003, only 17% of secondary school graduates pursued higher education; by 2023 this had increased to 60%. Between 2018-2023, the number of university graduates per year rose from 7.53 million to 11.58 million.

In 2022, approximately 70% of unemployed 20-24 year-olds held higher education degrees. That year, new university graduates entering the labour market reached 8.57 million, more than twice the number of secondary school graduates recruited.

Beyond economic slowdown, another problem is the mismatch between positions sought by graduates and industry needs. Many graduates aspire to high-salary office positions in technology, automotive, and finance sectors, but opportunities are increasingly limited. Meanwhile, logistics, trade, services, and manufacturing sectors face shortages of frontline workers and skilled technicians.

Industry requires “blue collar” workers and technical graduates for modern factories, as well as elite scientists and engineers for research and development, but the supply of graduates with these qualifications remains limited.

For years, income differences based on educational background were substantial. Elite university graduates typically secured well-compensated positions, whilst technical workers faced wage pressures. This earnings gap is narrowing as practical skills become increasingly valued in the labour market.

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