Despite boom, China graduates face job crunch

BEIJING, June 30 (Reuters) With the trees in bloom and the sun shining, students strolling the grounds of Beijing's leafy university campuses shouldn't have a care in the world.

They've marked themselves out as China's best and brightest by winning coveted places in college and are graduating into a country experiencing breakneck economic growth, social change and cultural revival.

So why is Bai Yun worried? The 21-year-old will soon have a degree in computer automation, but he's still struggling to find work, one of a growing number graduating only to face the unthinkable prospect of unemployment.

''When we pass the test and finally get into university, none of us consider what kind of work we might be able to get three or four years later when we graduate,'' he said.

But with about 750,000 more students graduating into the workforce this year compared to last, the competition is getting tougher, leaving the 20-somethings whose studies have often left them with little practical know-how floundering to find work.

''University students want to find an ideal job, but they don't really understand how society works. In reality they don't know what kind of job would be suitable,'' said Bai.

''And the competition is fierce.'' The spectre of unemployment is not only a worry for the students, but also for a government aware of past student activism. The student-led Tiananmen Square movement in 1989 was fuelled in part by discontent over the impact of high inflation.

MISMATCH At the same time, multinational companies report a shortage of skilled workers, leaving China with a mismatch between supply and demand in the labour market.

New graduates no longer want to work in the heavy industries that fuelled China's growth a generation ago, but face a service industry and small- and medium-sized enterprise sector that are too underdeveloped to absorb them.

''The same economic growth cannot provide the same employment it did several years ago,'' said Zhang Jian, a senior economist at the Asian Development Bank.

Graduates also often want their first job to be the one they stick with, fearing that if they move around, they'll lose coveted benefits like pensions and health care.

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