Employment Challenges: Starting Salaries for Recent Graduates in Shanghai Drop to 4,000 Yuan

Photo: A job fair in China (Getty Images)

[People News] The ongoing economic downturn in China is increasingly affecting the job market. In interviews with Radio Free Asia, several recent graduates and employers in Shanghai revealed that over the past year, the starting salaries for some university graduates seeking employment in the city have fallen from approximately 8,000 yuan to around 4,000 yuan, a level reminiscent of salaries from more than a decade ago.

Radio Free Asia reported that data released earlier by the Ministry of Education of the Communist Party of China predicts that the number of university graduates nationwide will reach about 12.1 million in 2025, an increase of approximately 430,000 from the previous year, marking a new historical high. The Ministry later disclosed that the total number of university graduates in the country is expected to reach around 12.7 million by 2026. Many graduates interviewed expressed that the decrease in job opportunities and falling salaries has changed the outlook for many young people regarding their futures.

Zhou Yi, a journalism graduate from Fudan University in Shanghai, shared with Radio Free Asia this past Monday that she was unable to secure a job within six months after graduation and had to continuously adjust her salary expectations downward. She recently accepted a position at an organisation with a monthly salary of 3,500 yuan. She stated, "I am currently working at a public institution with a monthly salary of 3,500 yuan. I searched for a job for over half a year and can only take this for now."

Extended Job Search Period for Graduates

Zhou Yi's situation is not unique in Shanghai. She noted that another classmate recently started working at a company with a monthly salary of just 3,000 yuan: "I have a classmate who only earns 3,000 yuan a month. After paying rent, there is hardly anything left. Her father has to send her money every month."

Discussions about youth unemployment and low-paying jobs continue to surface on online platforms. A senior student from a university in Shanghai shared with reporters that after completing his graduate entrance examination, one of the key reasons he chose to pursue further studies was his concern about the current job market.

He noted that many of his classmates have already started internships at various companies, but these positions typically offer daily wages averaging around 150 yuan, without provisions for meals or accommodation, and no overtime compensation. Once they transition to full-time roles, the monthly salaries generally fall between 4,000 and 5,000 yuan.

Although the university he attends is not classified as a '985' or '211' institution, it is still considered a first-tier university, and his major is in a field that has gained significant attention in recent years. He expressed that this salary level does not align with the common perception of the job market in Shanghai.

Discrepancy Between Advertised and Actual Salaries

The reporter examined several recruitment platforms and discovered that some companies advertise salaries ranging from '8k to 12k' per month. However, in actual discussions, employers often keep the base salary around 4,000 yuan by using terms like 'performance', 'flexible range', and 'adjustments after full-time employment'.

Ms Hu, the founder of a headhunting firm in Shanghai, explained to reporters that to attract candidates, the salaries listed on recruitment platforms are typically higher than what is actually paid, with some positions showing discrepancies of one to two times. She remarked, 'This is the standard practice in the industry. In the past, a position might be advertised at 30,000 yuan, but during negotiations, they would point out various shortcomings and ultimately offer 15,000; now they might advertise 8,000 yuan, but in the end, it could be just 4,000 yuan. If the salary is set too low from the start, hardly anyone will submit a resume.'

Zhao Zhi, a human resources manager involved in online recruitment in Shanghai, told reporters that in the current market environment, a monthly salary of 4,000 yuan for fresh graduates is regarded as a 'reasonable range' by many companies. He noted, 'In Shanghai, a university graduate is offered 4,000 yuan, while in Shenyang, the salary may only be between 2,800 and 3,500 yuan.'

Official Unemployment Statistics Spark Controversy

On January 19, Kang Yi, the director of the National Bureau of Statistics of China, announced that the average urban survey unemployment rate for the entire year of 2025 is projected to be 5.2%, with the urban survey unemployment rate for December 2024 at 5.1%. The government claims that the employment situation is generally stable.

However, Zhao Zhi pointed out that the Chinese economy continues to decline, with an increase in company exits and layoffs, leading to an actual number of unemployed individuals that exceeds the official figures. He explained, 'The official unemployment rate mainly counts those who are still looking for jobs, not all unemployed individuals. Many people have actually stopped searching for work or can only turn to flexible employment, which is also counted as employment in the statistics. These situations are difficult to capture in the data.'

Some netizens highlighted that recent data from Yunnan University indicates that among the 5,600 graduates of the 2025 class, only 1,188 have secured employment, resulting in an employment rate of approximately 21.2%. In other words, nearly 80% of graduates have not found jobs by the time they graduate.

Respondents widely agree that, in the context of a slowdown in China's economic growth and a tightening job market, the drop in starting salaries for recent graduates reflects the current employment situation in first-tier cities. Many graduates have indicated that they are now prioritising 'whether there is a job' over 'how high the salary is.' Their expectations for employment and life plans are being adjusted, and this shift is still in progress.
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