Key facts
- An increasing number of Chinese college graduates are returning to their hometowns for employment.
- Government policies offer incentives such as tuition reimbursements or student loan repayments for grassroots employment.
- Graduates who complete grassroots service are eligible for bonus points on the national postgraduate entrance exam.
- Employment in county-level cities and rural areas has risen significantly for both bachelor's and vocational graduates.
- Economic development and lower living costs in smaller regions are attracting graduates.
- County-level regions represent a substantial share of China's total retail sales and show strong growth in consumer sectors.
An increasing number of Chinese college graduates are returning to their hometowns and seeking employment in grassroots roles, driven by government incentives and a shift in attitudes toward job opportunities in rural and smaller urban areas. The 2024 China Undergraduate Employment Report by consultancy MyCOS indicates a rising trend of graduates from central and western regions finding jobs locally.
In 2023, 87 percent of bachelor's graduates in Central China and 80 percent in the western region were employed within their home provinces. This trend is supported by government policies aimed at encouraging university graduates to pursue grassroots work in central and western regions, and remote areas. Incentives include tuition reimbursements or student loan repayments, capped at 12,000 yuan per person annually. Additionally, graduates who complete service in grassroots employment projects are eligible for a 10-point bonus on the national postgraduate entrance exam within three years of service.
Local governments are also actively promoting this shift. For instance, Liuyang city in Hunan province has seen over 60 percent of participants in its annual recruitment event choose to return for career development, with a significant portion opting for grassroots jobs. The report highlights a notable increase in graduates finding employment in county-level cities and rural areas, with 27 percent of bachelor's degree earners and 29 percent of vocational college graduates from the class of 2023 finding jobs in these regions, a rise of 6 and 7 percentage points respectively since 2019.
This shift is partly attributed to intensifying competition and stable job openings in major cities, prompting graduates to explore less competitive markets in smaller cities and counties. Lower living costs, reduced financial pressure, and a preference for work-life balance and proximity to family are also key attractors. The economic development of county-level regions, evidenced by the expansion of major retail chains and significant contributions to national retail sales, is further enhancing employment prospects. Professor Hu Dawu notes that the integration of county economies with surrounding metropolitan areas is making these regions more feasible for job seekers, including those with associate degrees, bachelor's, and even some postgraduate qualifications.