Summary 

The most recent annual report on Chinese HE students' graduate outcomes has shown a continued decline in employment rates. The employment rate for bachelor's degree graduates has dropped to 91 per cent, continuing a decline that has been ongoing since at least 2014. This is mainly due to a rising proportion of graduates reporting that they are preparing for postgraduate entrance exams, who are counted alongside unemployed graduates in the statistics.

The report shows that the employability rate of graduates receiving diplomas from higher vocational colleges is now higher than that of university graduates, although average wages for those with bachelor's degrees are still substantially higher.

The report also analyses the salaries of students who graduated in 2015. It shows that  the average salary three years after graduation was around RMB 7,400, compared with a little over RMB 4,000 six months after graduating.

Analysis by Kevin Prest, Senior Analyst, British Council International Education Services.

From the perspective of UK education institutions, the most important takeaway from this report is the rising demand for places on master's degree programmes. Postgraduate entrance exams are usually taken in a student's final year of undergraduate study so the significant rise in graduates preparing for these exams points towards increasing numbers of students resitting the exams after failing to secure a place the first time. This shows that China's domestic universities are failing to meet student demand, creating opportunities for overseas HEIs.

The report also gives important context for Chinese salary data. China has a very steep wage curve in the first few years after graduation, with graduates earning 84 per cent more three years after graduation than they did after the first six months. A similar effect applies to returning overseas graduates, who receive relatively low salaries at first but a rapid increase over the first few years. This means that media reports of low initial returnee salaries do not properly reflect their earning potential over their whole career.

Source

Duozhi: Mycos releases "Blue Book of Graduate Employability 2019"; the 2018 graduate employment rate was 91.5% (in Chinese): http://www.duozhi.com/roll/201906108850.shtml [Note: The 91.5% figure in the headline includes both bachelor’s and diploma graduates]