Skilled Labor Shortage in China: A Modernization Dilemma

China has been trying to establish a dual training system modeled after European practices for over two decades. However, despite the growing demand for skilled workers in its rapidly modernizing industries, there is still a nationwide shortage of millions of well-trained workers. President Xi Jinping aims to transition China to a modern industry focused on high technology and innovation, leading to an even greater need for skilled workers.

The lack of clearly defined training occupations, quality issues in vocational training programs, and the mismatch between education and labor market demand have hindered the success of vocational training initiatives in China. While foreign-financed companies have implemented successful vocational training programs, these projects alone cannot meet the demand for skilled workers. The government has expanded higher education significantly in recent years, but many graduates struggle to find jobs that match their qualifications.

President Xi Jinping’s suggestion that university graduates should move to the countryside to help farmers with their work has been met with skepticism by students. Despite efforts to address the skilled worker shortage and unemployment among academics, significant challenges remain in China’s vocational training and higher education systems. The employment rate for university graduates remains low, indicating a mismatch between education and job market demand.