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November 27, 2011

Smart, Young, and Broke: White-collar workers are China's newest underclass.

Melinda Liu:

At first glance, Guo Yilei looks like a Chinese success story. Born to a poor peasant family in China's remote Gansu province, he's now a 26-year-old computer programmer in the Big Cabbage (as some call Beijing nowadays). By Chinese standards he makes decent money, more than $70 a week. When he has work, that is. It can take months to find the next job. And meanwhile, he's living in Tangjialing, a reeking slum on the city's edge where he and his girlfriend rent a 100-square-foot studio apartment for $90 a month. "When I was at school, I believed in the saying, 'Knowledge can help you turn over a new leaf,'" says Guo. "But since I've started working, I only half-believe it."

Guo and an estimated million others like him represent an unprecedented and troublesome development in China: a fast-growing white-collar underclass. Since the '90s, Chinese universities have doubled their admissions, far outpacing the job market for college grads. This year China's universities and tech institutes churned out roughly 6.3 million graduates. Many grew up in impoverished rural towns and villages and attended second- or third-tier schools in the provinces, trusting that studying hard would bring them better lives than their parents had. But when they move on and apply for jobs in Beijing or Shanghai or any of China's other booming metropolises, they get a nasty shock.

Posted by Jim Zellmer at November 27, 2011 1:45 AM
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