Unemployed Chinese Graduates Say No Thanks To Factory Jobs
hackingbear writes "While people and politicians are pitching for more education and reviving manufacturing in this country, jobs go begging in factories while many college educated young workers, which now number 11 times more than in 1989, are unemployed or underemployed in China. A national survey of urban residents, released this winter by a Chinese university, showed that among people in their early 20s, those with a college degree were four times as likely to be unemployed as those with only an elementary school education. Yet, it is not about the pay. Many factories are desperate for workers, despite offering double-digit annual pay increases and improved benefits, while an office job would initially pay as little as a third of factory wages. The glut of college graduates is eroding wages even for those with more marketable majors, like computer science. Vocational schools and training programs are unpopular because they suffer from a low status [or are seen as] for people from unsuccessful, poor, or peasant backgrounds. 'The more educated people are, the less they want to work in a factory,' said an unemployed graduate. If we do succeed bringing back factory jobs, are there enough people who want them?"
People still see factory jobs as being for "stupid" people and they are generally looked down on, while even terrible office work is considered acceptable. This shouldn't be.
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Let's be honest, college in China is no where near the difficulty as in the U.S. It's even harder than Japan if folks who've been to both countries are to be belived. You work hard for an education, you deserve something better than being a semi-automoton.
Now we get on our graduates' cases when they complain about doing menial jobs. It's a tough first year (or 5) right after school, but in places like China where you're competing against literally millions in the same line, what are your odds of personal advancement without connections?
If computers were people, I'd be a misanthrope.
From the summary:
Can anyone tell me what this sentence means?
We've all heard the ancient urban myths about PhD's flipping burgers, but here in the States there seems to be a social stigma among younger graduates attached to manufacturing jobs that sometimes clouds one's financial judgement. Holding out for a cool-sounding title and a comfy chair over a steady job that pays considerably more, just because a lot of rednecks or minorities work there too, just doesn't make sense. You can still pursue your dream job while you earn a living, and you can do your laughing at the other people on payday.
Scruting the inscrutable for over 50 years.
and in the us Factorys are saying there are skills gaps with people and they are pushing advanced manufacturing programs from community colleges
http://articles.chicagotribune.com/2012-06-26/news/ct-met-new-harper-college-jobs-program-20120627_1_manufacturing-summit-harper-college-production-workers
As a holder of a graduate degree who can currently only get work as unskilled labor, I can see both sides of this. I work on the ramp at the airport, and while the job isn't really all that bad, intellectually it is unstimulating and rather boring; obviously I am also greatly overqualified for it. The thing is, turns out there are a lot of people there with college degrees, including in things like law or engineering. And, once you get a few years in, you can actually make decent money: one guy I know who has been there 7-8 years makes about 70k a year with overtime. You actually end up working with some pretty good people, and there is opportunity to move up, especially if you have an advanced degree and the ability/desire to advance. In any case, its a whole lot better than sitting at home drawing unemployment. Not everyone is going to get to work their dream job, and eventually you have to make a decision on whats more important: waiting around for year for a tiny shot at getting a job in the field you studied for, or taking a job with pretty decent pay that will let you pay off your education debt and provide for yourself/your family.
In this specific case, it seems like a no-brainer. If you are in fact skilled and intelligent, take that factory job. In a few years you'll probably end up a foreman, supervisor, or manager. Again, as someone in a similar situation, it comes down to this: job>no job.
The only thing necessary for evil to triumph is for it to be pitted against a slightly greater evil
For young people (those still looking for a mate, in particular), taking a factory job would be a big blow to their status, regardless of the level of pay. Better an unemployed white collar professional than an employed manufacturing worker, welder, or truck driver. It's similar in the US. Financially the median person is better off becoming a truck driver at 19 than pursuing a law degree (and racking up the associated debt), but being a trucker is really socially limiting. Likewise manufacturing in China, I expect.
The problem is the pay, if the manufacturing job pays $12.50 an hr why bother? If they won't raise pay to get more people there isn't a real shortage.
More places need the German system two tier system or at least some like where apprenticeships and trades schools are not kicked to the side.
Here in Germany, there are some factory jobs that can compete with the salary one would get as an engineer, but not many.
And they tend to be skilled jobs, so it is not just a matter of "oh, I feel like doing manufacturing for a change", you usually have to show that you've successfully completed some form of vocational training. So the graduate who has never worked in a factory before might not be accepted for these jobs.
He could try for an unskilled job instead but the pay is much lower then. The Chinese situation seems pretty unique.
C - the footgun of programming languages
+1 ... the apprenticeship system is great.
http://en.wikipedia.org/wiki/Apprenticeship#Germany
back in the day factories had to train people to develop these skills, and it cost them money. factories pushing those costs onto education, which is paid for by the future employee or the government is funny. Of course they'd like colleges to teach exactly what they need - it will save them a lot of money!
Mike Rowe covered this exact phenomenon here in America. Truth is, it's globally universal. Please listen to his speech with regard to work ethic on TED below.
http://www.ted.com/talks/mike_rowe_celebrates_dirty_jobs.html
Life is not for the lazy.
While this phenomenon is to be expected, it happened much faster than I expected. And I consider it a good thing. We need people to move people out of low-level manufacturing.
The problem with manual labor is that sooner or later, automation will cause a majority of the workforce to become unemployed. Irrespective of wage cuts, cramped spaces, etc. A machine can almost always do it better than a human can (and for cheaper given a large enough scale). If there is a fixed algorithm/procedure to follow with very little dynamic decision making, you don't need humans to do it.
We should be educating people more and more and give them the skills that won't be automated in 5-10 years. Otherwise, you are just pushing the problem a few years down the line - "iPhone manufacturing is now automated? Fine, I'll join an iTeleport manufacturing plant". Which is why when I hate it when a politician talk about how they are going to "bring back manufacturing from China" - they aren't addressing the problem. Those low-skill manufacturing jobs aren't coming back. Either they will be automated, or you are competing against an extremely cheap labor force and will never win out.
"not've" is actually an English word, although an older one. I added it to match the use of 'wrote' as past participle.
And yes, it was a joke.
"First they came for the slanderers and i said nothing."
In the book "The China Price", a factory worker is discussed who had his hand mangled in an injection molder. He was left to fend for himself with a tiny bit of "compensation" from the factory. No wonder smart people in China want to avoid factory jobs -- they are not like factory jobs in the USA. See:
"The China Price: The True Cost of Chinese Competitive Advantage" by Alexandra Harney
http://www.amazon.com/The-China-Price-Competitive-Advantage/dp/0143114867
"In this landmark work of investigative reporting, former Financial Times correspondent Alexandra Harney uncovers a story of immense significance to us all: how China's factory economy gains a competitive edge by selling out its workers, environment, and future. Harney's firsthand reporting brings us face-to-face with a world in which intense pricing pressure from Western companies combines with ubiquitous corruption and a lack of transparency to exact a staggering toll in human misery and environmental damage. This eye-opening expose offers, for the first time, an intimate look at the defining business story of our time."
China is already moving to increase automation. From a couple years ago:
http://ww5.plasticsnews.com/china/english/headlines2.html?id=1278958338
"In the wake of labor unrest, Chinese factories are adding automation to control rising labor costs. It was bound to happen."
The same issues will play out as in the USA with a declining need for most human labor in all areas. For ideas on what to do about it:
http://www.pdfernhout.net/beyond-a-jobless-recovery-knol.html
I also don't understand why China does not just print money to give out as a "basic income" to Chinese citizens so they can buy Chinese factory products (eventually recycled by taxes when the money supply grows to the right size). While in the past it might have made sense for Chinese factory workers to accept low wages as a sort of "tax" so China could learn how to make things based on Western know-how, it seems that has passed the point of diminishing returns. The big issue is that the Chinese don't have enough cash to buy their own goods, and that should be relatively easy to solve. I guess even the Chinese don't understand modern fiat-dollar economics, let alone the emerging post-scarcity economic model? Of course, I could say much the same about the USA, where there is a shortage of money supply because so much digital cash is either sitting on the sidelines parked in zero interest bank accounts or is in the zero-sum "casino economy" on Wall Street. Related links:
http://www.globalresearch.ca/an-emergency-program-of-monetary-reform-for-the-united-states/5494
http://www.youtube.com/watch?v=Q3p48upXJaA&feature=mfu_in_order&list=UL
http://www.basicincome.org/bien/aboutbasicincome.html
http://www.moneyasdebt.net/
A 21st century issue: the irony of technologies of abundance in the hands of those still thinking in terms of scarcity.
Any factory that is really "desperate for workers" would improve their pay, benefits, and working conditions until they were no longer desperate for workers. (Note that opportunities for advancement are factored in--if your job has fewer opportunities for advancement than other jobs, you need to improve the other factors enough to compensate.) If the industry is not dead (and this one clearly isn't), they will get enough workers before they make themselves unprofitable.
In the H1B context in America, "desperate for workers" means "desperate with workers who will work for what little we have to offer". Interesting to see that it works the same way in a different industry, different country, and different circumstances as well.
In the USA though so it may be totally different in other places... I recently heard some girl call into a radio show with "I have a college degree, I am not going to work at a factory", which I took offense to, "why not" I shouted out.
factory's can be very interesting places, you dont just take a army of drones, stick them in a building and say make me shit. No, there's mechanics, machinist, IT and communications staff, computer programmers, designers, engineers, sales staff, accounting, HR, wearhousing, logistics and more, often in the same facilities.
Its a rare hornets nest of activity and creativity that takes an idea produced out of thin air into a product you can make and sell thousands of in a day, and it takes a huge skill set over teams of people to make all those cogs line up perfectly.