Why China's Millennial Workforce is Flocking to 'Resignation Extravaganzas' - A Fascinating Trend!

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When Liang quit his banking position in Zhejiang province, his friends celebrated by throwing him a party reminiscent of traditional wedding ceremonies. The festivities included the beating of gongs and drums.

His friends, who had likewise resigned from their professions, adorned Liang's lapel with a flower beneath a vibrant crimson banner bearing the words: "We have concluded our ordeal with this inconsequential occupation!"

Surrounding them, vibrant lanterns, banners, and "double happiness" signs commonly found at weddings adorned the area, while tables were abounding with an abundance of delectable cuisine.

Each attendee was sent an invitation that read: "Wishing you a feast and a flowing drink, a swift escape from any hardships you may face." It may appear unconventional to commemorate departing from a secure job with an attractive salary, particularly given China's bleak economic outlook and the alarming rate of youth unemployment, considering the scarcity of such positions.

But Liang, who is 27 years old, has experienced an increase in happiness since leaving his job in May and transitioning into a role as a content creator while managing a café. This sentiment has been echoed by numerous individuals online who have found themselves in comparable situations.

Cakes and pastries at Liang's resignation party. The sign reads: 'I quit!'

Liang

"I was trapped in monotonous, automated tasks that drained me of my energy," he disclosed to CNN, expressing his creative suffocation within a public relations department at a banking institution. "Any innovative ideas I had would simply be brushed aside and ultimately forgotten."

For privacy purposes, CNN has assigned Liang a pseudonym.

Hundreds of posts documenting resignations parties have gone viral on Chinese social media platforms in 2021. This phenomenon has coincided with China's gradual recovery from the isolating effects of the Covid-19 pandemic, while concurrently confronting the consequential impacts on its economy and society. The majority of individuals partaking in this trend belong to the 20-something age group and provide a diverse range of reasons for their job departures, spanning from inadequate remuneration to overwhelming job stress.

Food and wedding decor at Liang's party.

Liang

According to Maimai, a Chinese counterpart to LinkedIn, 28% of the 1,554 employees surveyed from January to October 2022 resigned during that year. The number doubled for those who planned to resign but had not yet done so. In the United States, a similar trend known as the Great Resignation saw nearly 50 million individuals quitting their jobs over a span of two years. Although the phenomenon is dwindling in the Western countries, it appears to be gaining momentum in China.

Overworked young individuals, who have dedicated their lives to academic rivalry and corporate advancement, are experiencing significant disillusionment due to the lack of fulfillment in their achievements. This trend, according to experts, could worsen the economic challenges currently faced by the country. Given the declining birthrate and shrinking workforce, future growth prospects and the prospects of Chinese youth across generations may be seriously compromised.

The school rat race

In China, numerous children embark on the educational competition from an early stage, engaging in extensive after-school tutoring sessions and enduring high-pressure examinations. This journey eventually leads to the feared "gaokao" college entrance exam, which students usually have only one opportunity to attempt.

According to Nancy Qian, an economics professor at Northwestern University's Kellogg School of Management, people outside of China, particularly in the West, do not fully comprehend the challenges faced by children in the country. These young individuals experience overwhelming disappointment, exhaustion, and resentment as a result of their intense hard work. Growing up during a period when the economy was thriving and the future appeared hopeful, they are the outcome of the one-child policy. However, despite the policy being relaxed in recent years in an attempt to increase the birth rate, they have had to navigate excessive parental expectations while competing in a fiercely competitive system.

People attending a job fair in Beijing on August 26, 2022.

According to Qian, they were assured that their sacrifices would pay off once they achieved financial success. However, they have now been faced with the harsh realities of a sluggish economy, unprecedented unemployment rates, and stagnant salaries caused by a culture of excessive workload.

Qian expressed concern about how it erodes the moral values and work ethic ingrained in them since childhood. As a result, they are experiencing complete burnout. In contrast to previous generations, who primarily prioritized financial stability, the younger adults of today, raised in a more affluent period, seek meaningful and purposeful work, which their current jobs frequently lack.

A market mismatch

That sense of disillusionment is heightened by what experts say is a mismatch between peoples education levels and their skills, and the jobs available.

According to the Ministry of Education, China has established the largest education system globally, witnessing a near doubling of university enrollment in a mere decade, reaching 57.8% in 2021.

Nonetheless, research conducted by Yao Lu, a sociology professor at Columbia University, reveals that a considerable number of employees possess qualifications exceeding the requirements of their current jobs, indicating a mismatch between the skills and knowledge acquired in school and the job demands.

The employees are engaged in occupations that may offer stability and decent pay, but commonly do not require a college degree, such as administrative positions in local district offices and food delivery driving, according to her statement. This disconnect has significant social implications, including the employees frequently experiencing low levels of life and job satisfaction, she further emphasized.

University graduates at a job fair in Yibin, China, on June 14, 2023.

Veyron Mai, a resident of Foshan, graduated with a bachelor's degree in music but struggled to find employment as a music teacher. Eventually, he transitioned into blue-collar work and experimented with car washing before ultimately becoming a restaurant server.

Recalled toiling in the sweltering summer, laboring with cleaning supplies described as "highly corrosive."

"Even with gloves on, the chemicals would sting and mar my hands. Being there for only a month, I grew embarrassed to reveal my hands to others. How can I even consider myself a music student?"

Lu said that there is a current "structural imbalance" in the supply and demand dynamic. She noted that despite the increasing number of higher education degrees in China, the economy does not currently necessitate a large number of high-skilled workers. Furthermore, she acknowledged that transforming the economic structure takes time.

Fewer workers?

The mismatch in the labor market is likely be a long-term issue, which is not good news for the economy as it faces obstacles on multiple fronts.

For years, China's fertility rate has been on the decline, leading to a decrease in the number of babies being born and a dwindling working-age population. At the same time, the country is grappling with a rapidly aging population, resulting in a growing need for resources to support pensions, healthcare, and other welfare services.

Commuters wait on the platform at Auber RER train station in the La Defense financial district in Paris, France, on January 5, 2022.

Nathan Laine/Bloomberg/Getty Images

Qian stated that amidst the emergence of the Great Resignation worldwide, the most concerning outcome would be the possibility of disheartened young individuals completely withdrawing from the workforce. This would ultimately result in an even smaller workforce available to support the aging population in the future.

The impact of the resignation trend on fertility remains uncertain, according to her.

She mentioned that young adults, now relieved from exhausting work schedules, may have more opportunities to prioritize relationships and initiate families. However, there is also a possibility that they may further postpone this process due to "financial setbacks and emotional distress."

"Anything that pushes fertility rates even lower is a serious concern for the future," she said.

Many of those resigning from their jobs arent leaving the workforce entirely.

Those who have shared their stories with CNN or documented their experiences on the internet have transitioned to different roles or industries. The duration of this trend remains uncertain.

Liang currently manages a cafe in Taizhou, a city in the eastern region characterized by mountains and a coastline. "Considering my age, I have the freedom to resign whenever I desire," he expressed. "However, perhaps in a year or two, I will reluctantly have to return to the workforce."