China is facing a serious problem with youth employment. Instead of staying home looking for work, some young people are turning to so-called 'fake offices,' where they are not required to do real work but are willing to pay for it out of pocket.
According to a report by Fortune, Chinese youth spend between 30 and 50 yuan daily (equivalent to approximately $4.20 to $7 or 401.98 to 669.97 rupees) to stay in these 'pretend to work companies.' Although this amount seems small, it represents a significant expense for young people, considering that the average annual salary in China's non-private sector is about $16,000. Thus, annual expenses for visiting these offices can reach approximately $1,820.
In these places, unemployed young people engage in their startups, apply for vacancies, and socialize with other job seekers. Additionally, they are provided with various amenities such as computer access, snacks, meals, and drinks.
These simulated workspaces are located in major Chinese cities, including Shenzhen, Shanghai, Nanjing, Wuhan, Chengdu, and Kunming. According to the report, 14.5% of youth aged 16 to 24 in China are looking for work. The problem goes beyond a simple lack of jobs; some unemployed young people in China have started calling themselves 'Rat People' on social media, spending most of their time in bed, using their phones, sleeping, and ordering food. Another group of youth views this phenomenon as the 'Lying Flat' trend—an effort to minimize life's efforts.
Experts note that while spending money on the appearance of working in an office may seem illogical for the unemployed, these places might be more effective for creating new opportunities than staying alone in an apartment for those seeking employment. Christian Yao, a senior lecturer at Victoria University of Wellington's School of Management, told BCC that the practice of pretending to work has become quite common.
The need for such places arises from the growing gap between economic changes, education, and employment, forcing young people to seek temporary solutions or contemplate their future. Fake offices have become one such option during this transition. The seriousness of the employment crisis in China is underscored by the fact that Peking University economics professor Zhang Dandan estimated the youth unemployment rate at up to 46.5% in 2023. Following this period, Fortune reported that the Chinese government stopped publishing relevant statistical data.
After recording a record level of youth unemployment for three consecutive months, the Chinese government completely ceased collecting data on this issue. This alarming statistic included 16 million Chinese workers who were of working age but limited themselves to minimal work to sustain existence, without aspiring to high positions.
The Chinese government is taking steps to reduce the alarming level of youth unemployment. As early as 2011, the Ministry of Education warned that college curricula with an employment rate below 60% for two consecutive years could be closed. To avoid having their programs shut down, some Chinese universities asked graduates to artificially inflate their employment figures. Henry Gao, a law professor at Singapore Management University, told the South China Morning Post in 2023 that the real situation of youth unemployment in China might be much worse than the figures show, as educational institutions are incentivized to inflate employment rates. Reports have also surfaced that colleges hire their own graduates to conceal the actual data.
Despite signs of improvement in the unemployment situation, being an unemployed professional is so commonplace in China that young people are beginning to display their unemployment as a kind of pride. Instead of 'girl bossing,' young members of Generation Z call themselves 'Rat People,' spending days in bed, scrolling through their phone feeds, dozing off, and ordering food. This trend has become popular on the social media platforms Weibo, Rednote, and Douyin.