Returning overseas graduates have found the value of their degrees have fallen further in China’s increasingly competitive job market, with some students receiving salaries over a third lower than expected, a survey of over 9,000 students and parents showed.
Overseas-trained talent known as haigui, which sounds like the Chinese word for sea turtle, typically received first monthly salaries between 23 to 34 per cent lower than their expectations last year, according to a report released last week by New Oriental Education & Technology Group, a leading off-campus education provider.
The survey said students with overseas undergraduate degrees earned an average first salary of 7,928 yuan (US$1,097) per month, falling about 2,700 yuan below their expected income.
Graduates with a master’s degree, meanwhile, earned an average monthly salary of 9,526 yuan, although this also fell short of their expectations by about 2,200 yuan.
A record high 11.79 million university students are expected to enter China’s job market this year, with the world’s second-largest economy still not yet fully recovered.
Last month, the unemployment rate for the 25-29 age group also remained unchanged at 7.2 per cent.
“[Youth unemployment is] one of the reasons why we say the labour market has not normalised. We’re missing a few data points,” said Francoise Huang, senior economist for the Asia-Pacific region at Allianz Trade.
Within the New Oriental Education & Technology Group survey, nearly 20 per cent of respondents aspired for salaries exceeding 15,000 yuan.
However, scarcely any young professionals holding overseas bachelor’s degrees achieved their goal, with only about 10 per cent of master’s degree holders reaching the threshold.
The reality is that it’s very difficult for them to earn such a high salary from their first job
The salary expectations reflected the generally high self-confidence among students, the report said.
“But the reality is that it’s very difficult for them to earn such a high salary from their first job,” it added.
And for many Chinese families, sending their children abroad to study is no longer viewed as a luxury, according to the report.
“This trend [of more middle-class families sending their children abroad] is inextricably linked to the rapid development of [China’s] economy and the improvement of people’s living standards, with studying abroad becoming more popular and normalised,” the report added.
Over the past decade, there has been a notable increase in the proportion of parents seen as an “ordinary employee” who intended to send their children overseas, with the figure reaching 45 per cent in 2022.
But this year, the figure had declined to 39 per cent.
Fewer parents in “middle management” positions also opted to send their children abroad, with the figure only reaching 29 per cent this year.
“This downward trend may be linked to the tense international economic climate in recent years, resulting in shrinking funds for some families and a more cautious attitude towards studying abroad,” the report said.
“Elite families have remained relatively unaffected by these factors.”
China’s economic downturn and geopolitical events also affected the choice of destination for middle-class families, the report added.
11:04
Why so many young Chinese choose to be ‘full-time children’ who work for their parents
Why so many young Chinese choose to be ‘full-time children’ who work for their parents
According to the report, Britain remained the most popular destination for studying abroad for the fifth consecutive year in 2024, ahead of the United States.
The report said this was partly due to the shorter courses offered in the UK, which are typically one year for master’s degrees, compared to two years in the US, which means lower living expenses and a quicker entry into the job market.
In addition, the UK could provide a more stable political environment, the report added.
More middle-class families in China, who are contending with tighter budgets, are also selecting more affordable overseas study destinations.
Between 30 and 40 per cent allocated less than 300,000 yuan (US$41,500) for studying in Asian and European countries, the report showed.
This was lower than previous popular destinations in the US and Canada, where spending averaged about 600,000 yuan.
Additional reporting by Ralph Jennings