Every day since the Chinese New Year, thousands of new graduates have packed the halls of Shenzhen’s talent markets (rencai shichang 人才市场) on Bao'an North Road looking for jobs – the vast majority come away empty-handed. Companies are still recruiting but their requirements are getting tougher and the pay is getting lower.

Six million university students graduated last year and, according to a report by the Chinese Academy of Social Sciences, about 1.5 million are still unemployed. The government is now seriously concerned at the rising level of graduate unemployment and has instigated a wide range of policies designed to ease the situation, including lifting residency requirements to allow freer movement of labour, but these policies are of little benefit to the job hunters in Shenzhen.

For most companies advertising positions on the talent markets’ bulletin boards, a university degree was the minimum requirement, in addition they wanted applicants with between one and five year’s relevant work experience. This has left fresh graduates out in the cold. Even graduates with several years work experience were having a tough time finding employment.

“It is very difficult right now. I can’t find a decent job and so I will have to take anything I can get just to pay the rent,” a translator from Hunan with five years work experience in Shenzhen said.

Company representatives at the talent market recruitment booths said the number of job seekers had greatly increased over the last year but that it was still difficult to find good people. “The number of universities has increased but the quality of education has decreased,” one company manager said, “the level of English is of particular concern, and even if they can speak good English, they have no or very limited skills in other areas.”

Job seekers said wages have decreased significantly over the last year and work conditions have got tougher. Many had quit their job because conditions were so bad but now could not find alternative employment. Even those who had been working in Shenzhen for several years were now considering returning to their home town. “I will stay here for as long as I can because Shenzhen is the best place to be but if I can’t find work, I will have no choice,” a computer engineer said.

New graduates are arriving in Shenzhen everyday, usually staying with friends and relatives because without a job they can not afford an apartment. Cramped dormitory rooms are available for 12 yuan a day but rent for one person in small shared apartment downtown can be between 750 yuan and 1,000 yuan a month, while the minimum wage in Shenzhen is 1,000 yuan a month. If they want to stay in Shenzhen, many graduates will be forced to take low-paying, unskilled jobs just to get by but even these positions are increasingly hard to find as Shenzhen strives to upgrade its employment environment and eliminate outdated manufacturing industries.