Civil Service Exam Surge in China

By Laurie Chen
BEIJING (Reuters) – A record 3.4 million young Chinese took the civil service exam this year, attracted by job security and perks like subsidized housing amid a slowing economy and high youth unemployment.

The number of applicants increased by over 400,000 from last year, tripling since 2014. This reflects the demand for stability among disillusioned Gen Z Chinese and limited attractive options in the private sector, despite local governments facing fiscal crises and struggling to pay wages.

Klaire, a master’s student in Beijing, dedicated nine hours daily to study for the exam and spent 980 yuan ($134) on online tutoring. She emphasizes social prestige and job stability as reasons for applying for government or state-owned enterprise (SOE) jobs, especially after witnessing layoffs in her previous tech internship.

“I only want to pass the exam and not worry about what happens next,” the 24-year-old said, withholding her surname for privacy. Despite knowing civil servants who have gone unpaid for months, she still applied.

If successful, she faces further interviews and checks, with results expected around April. While rare, layoffs in civil service happen due to disciplinary violations, earning it the nickname “iron rice bowl.”

“The current leadership has no intent of reducing the size of public sector workers, who are the backbone of regime stability,” said Alfred Wu, an associate professor at National University of Singapore.

Most civil service positions have an age limit of 35 and provide subsidized housing and social insurance, making them attractive to graduates amid scarce private sector job opportunities. Even with a slight recent drop, youth unemployment remains high compared to pre-pandemic figures.

Chinese sociology professor notes that many Gen Z graduates feel burnout from the pandemic and economic slowdown. They haven’t seen significant state-sector layoffs, leading to an idealized view of government work. A meme summarizes: “Becoming a civil servant is the endpoint of the universe.”

Wage Woes

However, interviews with public sector employees reveal problems: widespread bonus cuts and pay reductions up to 30% have led some to consider resigning. Local government austerity measures have resulted in layoffs. Some civil servants report being unpaid for months and others struggle with monthly support on salaries as low as 4,000 yuan ($550).

Katherine Lin quit her civil service job in Shenzhen after her salary dropped significantly, and bonuses were eliminated. “Some departments chose to either cut salaries by 30% or fire people in response to cost-cutting policies,” she explained.

In rural Guangdong, a civil servant described his 4,000 yuan salary as “stable poverty,” after bonuses ceased. Complaints about delayed payments surfaced from civil servants in Shandong. Even amid these issues, the high youth unemployment has prompted an increase in civil service job demand.

Downsizing Pressure

Beijing has faced pressure for state sector reforms. Despite numerous downsizing campaigns, civil service jobs have grown from 6.9 million in 2010 to 8 million today, along with at least 31 million public employees with fewer protections.

Since 2020, tens of thousands of public sector positions have quietly been cut mostly through hiring reductions. Wage arrears are pervasive nationwide and difficult to resolve quickly. This situation may foster corruption as officials seek supplementary income through fees and bribes while risking social stability.

“The most pressing issue now is social stability,” the governance professor stated. “Therefore, the lesser of two evils will cause the expansion of civil service hiring and neglect institutional reform.”