Battling jobs crisis, China designs colour-coded degree rankings to focus on ‘graduates economy needs’

China’s worsening youth unemployment has forced policymakers to confront a deepening mismatch between university education and the labour market. Official data showed that more than 14 per cent of young people were unemployed earlier this year, a figure that analysts believe understates the full scope of the problem.

With private sector job creation slowing, many graduates have been unable to find suitable work. The growing anxiety has given rise to unusual trends such as “pretend offices,” where unemployed young adults pay daily fees to simulate a workplace environment. Experts say the popularity of these spaces reflects not only economic stagnation but also a crisis of confidence among graduates about their future prospects, the BBC reported.

Degrees placed under scrutiny

In response, Chinese authorities are moving to reshape higher education through a new colour-coded ranking system for university degrees. The scheme, widely discussed in state media, is intended to signal which fields of study are most aligned with market demand.

Degrees classified as “red” will be deemed oversupplied, while “green” degrees will be encouraged as high-priority disciplines serving the national economy. Though still in its early stages, the reform suggests a strong intention to link educational output more closely to industrial strategy.

Analysts have suggested that this top-down ranking will likely guide both student choice and university funding, creating a sharper divide between fields perceived as useful and those considered less practical, BBC said.

From property to drones: Shifting priorities

The government’s renewed emphasis on job-ready education comes as China tries to cultivate new growth engines. With the property sector weakened and traditional manufacturing slowing, Beijing has been actively promoting high-tech industries, including the so-called “low-altitude economy” of drones and flying cars, The Economist said.

Local governments and universities have already begun to introduce degree programmes in low-altitude technology and engineering, betting on the rapid expansion of this futuristic sector.

Officials have described it as a way not only to boost GDP but also to generate skilled employment opportunities for the next wave of graduates. By funnelling students into disciplines linked to state-backed industries, policymakers hope to narrow the gap between education and demand.

Graduates caught in transition

Yet for many young people, reforms cannot arrive quickly enough. Recent graduates often find themselves in limbo, taking up freelance work, pursuing side hustles or even paying to sit in mock offices to maintain a sense of routine.

In some cases, students have gone as far as renting space in these “pretend companies” to provide evidence of internships required for their diplomas, BBC said.

Scholars such as Biao Xiang of the Max Planck Institute have argued that this behaviour reflects a “sense of frustration and powerlessness” among youth, who feel detached from both the labour market and mainstream society. The colour-coded degree system, while designed to pre-empt such mismatches, may take years before it yields measurable results.

Risks of central planning in education

While the new ranking system signals determination, critics caution that centrally categorising degrees carries risks. Overemphasis on a handful of “strategic” disciplines may encourage students to cluster in fields that appear promising today but could face saturation tomorrow.

The recent surge of interest in artificial intelligence training illustrates how quickly trends can shift, with many graduates scrambling to acquire skills in response to changing hiring practices, BBC said.

Analysts warn that if state directives are too rigid, they may limit the flexibility needed in an economy undergoing constant transformation.

A question of dignity and direction

For those currently struggling, the reforms highlight a difficult truth: the Chinese state is no longer willing to tolerate what it sees as aimless education detached from economic needs. As the founder of one mock office in Dongguan put it, what many young people seek is not merely a desk but the “dignity of not being a useless person”.

The government’s colour-coded degree rankings, in effect, attempt to restore that dignity by steering education toward productive ends. Whether the initiative succeeds in easing youth unemployment remains to be seen, but the message is clear: China’s universities are being enlisted in the fight to align aspirations with national priorities.