A Research for Structural Unemployment of College Students in Shandong Province

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1 A Research for Structural Unemployment of College Students in Shandong Province ZHU Qingmei, SUN Xiaoyan School of Economics, University of Jinan, P.R.China, Abstract: During the reform of colleges and universities and economic development in Shandong Province, the structural unemployment of college students becomes serious gradually. This paper analyzes the reasons for structural unemployment of college students in Shandong Province from two sides: labor supply and demand. One reason is that the college students the lack of skills and knowledge with their backward employment idea and unreasonable major course system in colleges and universities. Another reason is the influence of industrial structure adjustment and scientific-technical progress, the lack of scientific employment standard of enterprises. Therefore, this paper puts forward that college students shall establish correct employment idea, and pays attention to improvement of capability; colleges and universities shall connect with the market to arrange majors rationally, in order to improve course system and strengthen employment guidance; the government should speed up develop modern service industry and hi-tech industry, implement more supportive policies related to employment and entrepreneurship, at same time, create good flow environment for labor market, and improve unemployment security for college students. Keywords: Structural unemployment, Market demands, Policy support 1 Introduction At present, unemployment of college students has become an important factor affecting economic development and social stability in Shandong Province. Among multiple unemployment types, structural unemployment of college students is undoubtedly the most serious. According to the supply and demand information of labor market provided by human resource department over the years, unemployed young people with new growth in cities and counties occupy the most in job applicants of Shandong, while the proportion of graduating students is the largest. Employment difficulty of college students and labor shortage of enterprises exist at the same time. It is urgent to solve structural unemployment of college students in Shandong by deeply analyzing the reasons to promote sustainable development of national economy and ensure social stability in Shandong. 2 An Analysis on Structural Unemployment of College Students in Shandong With the transition of higher education, which from elite education to popular education, graduates from regular institutions of higher learning in Shandong increase rapidly by 339% from 117,300 people in 2003 to 515,000 people in Since 2008, population of graduates from colleges and universities in Shandong is relatively high in the whole country. In recent years, the economy in Shandong develops rapidly, and the demands for talents in all industries also obviously increase. However, due to the enrollment expansion for higher education is conducted under imperfect market economic conditions, the economic development expansion on speed and scale is too fast to make graduates supply meet with market demands of college students. Therefore, the society cannot accept too many college students. Since the unemployment occurred for the first batch of expanded enrollment, the structural unemployment of college students in Shandong becomes more and more severe with the deepening of college expansion plan in province and annual increase of graduates. Unemployment can be divided into following types: 391

2 2.1 Conceptual structural unemployment Conceptual structural unemployment of college students refers to the structural unemployment because some college students are still affected by traditional employment and job selection concept, while secure job and other popular ideas cannot adapt to development of modern society. A lot of college students have not got rid of old ideas, thus their application ideas are not applicable to market demands. They always choose more promising foreign companies, state-owned enterprises or public institutions with stable job and good welfare. However, such positions are limited to accept excessive graduates. 2.2 Industry structural unemployment Industry structural unemployment refers to the structural unemployment which caused by the education for college students cannot match with the adjustment of industrial structure. Rapid growth of the third industry and development of modern service industry are all in urgent need of labor force with professional knowledge and labor skills. Many college students cannot satisfy with demands of units in labor market by learned knowledge, while enterprises certainly want to employ talents with professional skill to save training cost in both time and money. This disjunction of supply and demand leads to structural unemployment of college students. 2.3 Regional structural unemployment Regional structural unemployment refers to the structural unemployment for imbalance between students tendency of employment region after graduation and job supply in such region. The tendency of undergraduates to work in economically developed area is much more in poor area, which directly results in talents oversupply in economy developed region, while short supply in less developed region. Many college students choose to work in economy developed region, rather than rural area because of obstacle for separation between urban and rural area. 3 Reasons for Structural Unemployment of College Students in Shandong Although reasons for structural unemployment are various, can be caused by many aspects, the main reason is the imbalance between supply and demand of labor market. 3.1 Analysis on supply Lack of knowledge and skills of college students With economic development, knowledge and skill requirements of employers become higher and higher, while some college students cannot apply their knowledge when only studying for credit. They don t pay attention to practical experience, and their professional skills cannot meet the requirements of employers. Some college students cannot understand their own major well when they are in college, and have no rational study goal and future career plan. They waste their time, and neglect self-quality cultivation, which results in narrow knowledge scope. These students never adapt with the society but only waste time. Their ability cannot satisfy with job requirements and adapt to the work and society even if there is an employment opportunity Outdated employment concept of college students Employment concept of college students determines their future career. Many college students are despite of the reality with high expectance and particularly prefer employers with good benefits. However, jobs provided by these companies are limited, and cannot accept all the college students. Most college students prefer developed regions and cities to develop their career, while the capacity of these cities is quite limited, which makes employment pressure in these cities much greater. Affected by traditional concepts or elders, these students consider that their parents raising them and let them study in college which is aiming at they can be successful on career and living in big cities. Therefore, they would rather rent houses and stay in unemployed situation in big cities, than going back to get an 392

3 appropriate job with little pressure in their rural home after graduation. This is also one of the reasons for structural unemployment of college students Unreasonable major and course setting in colleges and universities Higher education has been transferred into popular education, but it just refers to expansion of student population, rather than qualitative change. Higher education shall connect with market, and the major setting in higher vocational education shall closely centers on market demand to cultivate professional talents. However, the misfit with the speed of economic development and social knowledge updating in Shandong is that the major setting and course system of higher education are obviously disjointed with actual social demands, lag behind the step of economic development, and cannot grasp market information about talent demands. Moreover, no targeted and time-based course is set. Courses of higher education in Shandong are not rational: on one hand, the course setting is convergent, and only aims at improving school level. Some colleges blindly expand scale under immature conditions to make setting of major and courses convergent inevitably; on the other hand, the content of courses is too old. Courses of higher education shall be improved according to talent demands of market in time. 3.2 Analysis on demands Small proportion of labor demand in modern service industry With the adjustment of industrial structure, the labor force absorbed by the third industry should take the biggest proportion, while the third industry, especially the modern service industry develops insufficiently in Shandong. Therefore, the employment cannot be absorbed well. From the industrial demands, the labor demand in the third industry is still increasing in the speed slower than that in the second industry. Labor demands in some traditional service industries, such as wholesale and retail industry, and hotels and catering services tanks the second, while the proportion of labor demand in financial, information, logistics, convention and exhibition, education and other modern service industries and hi-tech industries is quite small. This is an important reason for structural unemployment of college students in Shandong Lack of scientific employment standard for enterprises Enterprises introduce talents every year, but many companies pay attention to their capability and experience. In order to save cost and increase efficiency, these companies prefer staff with rich experience, rather than interns just graduating from the school. Many companies consider that education background is inversely proportional to stability that is, the higher the education background, the worse the stability will be. They think that staff with high education background may have high requirements in salary and development pursuit. Therefore, employed college students cannot well match with the job, which not only waste talents and employment cost, but also have no benefit to company and employee. In actual, ability of college students cannot be equivalent to education background in one side because many undergraduates and junior college students have good working ability. The lack of working experience is a disadvantage of college students in employment, but they have strong plasticity and great potential. Working experience can be accumulated during work, and college students with high quality in whole, fast knowledge receptivity and more knowledge reserve can adapt to job well after training. In addition, some employers have discrimination against sex and origin of students. Female students are in bad situation during employment for insurance of marriage and birth. Some employers prefer local students because they think these students more familiar with regional environment, which is beneficial to the job. All of these situations are not fair, and will cause structural unemployment of college students Scientific and technological progress causing structural unemployment of college students With scientific and technological progress, talent demands in various industries also show diversity and the requirements of talent skill also greatly improve, while comprehensive quality of modern college students cannot reach requirements of new job demands. Therefore, structural unemployment occurs. Technology promotes the application of new process, products and technologies to the society, and enterprises eliminate old manufacturing equipment and backward technologies to obtain advantages in 393

4 new competition and raise labor productivity. Meanwhile, the demands of college students with low skills reduce, while the demands of technical talents and innovative talents with high skills, which exceed talent supply, increase. At present, however, college students are only equipped with relatively weak knowledge and skills, so they are not capable of taking the job with high professional qualification. The vacancy of technical jobs and difficult employment of college graduates exist at the same time to form structural unemployment. 4 Solutions for Structural Unemployment of College Students in Shandong Province The Reasons for structural unemployment of college students in Shandong are very complicated. We should explore the solutions from multiple aspects. 4.1 Comprehensive support of government Accelerating the development of modern service industry and hi-tech industry The proportion of labor force in modern service industry and hi-tech industry is small, which shows that the development of hi-tech industry and modern service industry needs to be further accelerated, and there is a huge potential in this development. Of course, the exploration of this potential is dependent on the supply of high-quality labor force. With the great development of the third industry and hi-tech industry, the demands of high-quality labor force will certainly increase, which may have great promotion influence on employment of college students Strengthening employment policy support The government should give more support in policy to promote employment or entrepreneurship of college students. For example, enterprise recruits a certain number of new graduates in order to reduce employment discrimination in labor market. The government should provide entrepreneurship funds or loan with low-interest or free-interest to college students to encourage them to start their own entrepreneurship. Moreover, government should issue explicit regulations to avoid discrimination against non-key university graduates and sex to create a fair, just and good environment to college students. At the same time, the government also can strengthen the management and monitoring of employment by employers to avoid favoritism and irregularities during employment, and ask for public employment to maintain legal rights of college students Strengthening standardization of labor market The reform of household registration system shall be deepened, scientific, standard and uniform labor market shall be established, and good flow environment of labor market shall be created to realize free flow of college students. Free flow of labor force in market may provide more employment selection and opportunities to college students. The government shall positively lead graduates to enter into the secondary labor market to better promote the balance between supply and demand in labor market. In addition, relevant incentive policy shall be improved to provide better spirit and material reward to college students willing to enter into secondary labor market. Meanwhile, employment subsidies to college students working in relatively poor area shall be increased to attract more college students to the market in such area Improving unemployment security system for college students The strengthening of unemployment security system by some western countries has obvious effect in promoting employment. For example, America pays great attention to employment training of unemployed people. The government will spend huge money to strengthen training every year, which has obtained great achievements. Japanese government provides employment training to unemployed people and graduates at the present year, and encourages enterprises to provide training to their own staff. Under the tough situation for structural unemployment of college students in Shandong Province, taking existing experience as reference, unemployment security system should be established for college 394

5 students to encourage them conduct relevant skill training. In addition, financial input for occupational training should be increased to provide support to college students in professional skill training. 4.2 Reform of colleges and universities Rational major setting and course system improvement The major arrangement in colleges and universities and course system improvement should be based on market demands. Evaluation for major setting should be developed according to labor market, adaptive capacity test in professional field should be developed, matching degree between major and student capacity should be improved and flexible credit system and degree application plan should be adopted to improve employment quality of college graduates and satisfy diversified investment demand in human capital to great extent Strengthening employment guidance to college students Employment guidance to college students should be intensified by taking it as required course since the first year of college to strengthen education of employment view, lead students establishing market employment concept, determine employment goal according to reality, and well combine study with employment. The key guidance to graduates should be the basic skills and methods of job application, and relevant employment policies for preservation of employment rights according to laws. All guiding activities for job application should be regularly organized for college students to local employment market, and the role of staff for occupational guidance in all departments shall be played to provide assistance to employment of college students. 4.3 Employers shall set scientific selection standard Employers should change their talent view to meet job demands in principle of letting everybody fully display his talents, and match talents with job to pay more attention to working ability of college students, rather than pursuing education background in one side. In addition, employers should consider in long term to establish their own talent reserve mechanism, rather than paying particular attention to experience of employees for the present. College students are lack of practical experience, but they have good education, strong receptivity, and potential and plasticity. After a while of learning and training, they are able to play their own value. Therefore, employers should get rid of traditional selection standard, and establish scientific talent view under new situation with principle of capability and quality for measuring talents. Enterprises should consider about long-term development of enterprise and talents stability to provide an opportunity to college students with potential but without experience, and pay more attention to cultivation of capable college students. 4.4 Self-adjustment of college students Establishing correct employment idea College students should have ideas keeping pace with the times, and rethink and relocate themselves to abandon original and conservative employment view. They shall prepare for employment, and plan their future scientifically and rationally with a correct position as soon as possible. At the same time, please recognize the current employment situation and lower the standard to have job first and then make selection. Students shall not pay close attention to jobs at high starting point in big cities. With a correct employment view, college students shall be aware of those jobs in small enterprises and grass-roots works are also challenging Paying attention to improvement of self-capability College students should study hard on professional knowledge, in order to have a comprehensive understanding of their own major. They should be aware of their own deficiencies and shortages, and understand that there is little opportunity to take part in social practice with theoretical knowledge learnt in school. In reality, employment matching with major or using professional knowledge learnt in school is very difficult, but the major objective of study is to obtain infinite learning capability and wide views. Compared with social people, college students are lack of working experience, but they have learning 395

6 capability and innovation. Therefore, college students should bravely take part in social activity to experience works by leaving the school and avoid disjunction with the society. Students should positively take part in social clubs and organizations when they are in school. Communities in university are organized by students with a same interest, and students may enhance exchange capability and increasing their experience by participating social activities. Out of the school, students should participate practical activities to win practice opportunity in enterprise matching with major, these practice experiences can help new graduates make foundation for future employment by touching with the society and adapting working environment in advance. 5 Conclusion College students structural unemployment problem has become a focus of the attention, through the above analysis, for the reasons and countermeasures to the following conclusion: National economic development mode shift brought about by the social demand for talents type change, the objective reasons of college students structural unemployment problem are, under the background of this era, the development of higher education can not adapt to the transition of the social and economic development mode, to cultivate the talents can not adapt to social demand for talents, which leads to serious structural unemployment problem college graduates. To solve the current college students structural unemployment problem in our country, promote the university student full employment, from the following several aspects: one is the reform of higher education should strengthen its education, set up the development of higher education to adapt to the social market development model; two is suggested that countries should formulate relevant policies to encourage and ensure students employment effectively; three is suggested that college students adjust their own, including changing the backward traditional employment concept and improve their ability. References [1]. Du Hailing. Study on Structural Unemployment of Graduates From Colleges and Universities. Economic Research Guide. 2008, 14: 56 (in Chinese) [2]. Ji Yanhong. Reasons and Measures for Structural Unemployment of College Students J. Journal of Liaoning Educational Administration Institute. 2013, 2: 62 (in Chinese) [3]. Liu Xia, Men Cuimiao. On the Role of Government in Dealing With the Present Structure Employment Issue of University Graduates. Reformation & Strategy. 2013, 3: (in Chinese) [4]. Wang Xiaona, Wang Yiyao, Ding Li. On the Causes and Measures to University Graduates Structural Unemployment J. Journal of Guangxi Teachers Education University (Philosophy and Social Sciences Edition). 2008, 4: (in Chinese) 396