Source: China Youth Daily

12-19-2008 15:18

On December 13, a job fair was held in New York by a Shanghai work team to recruit  high-level financial professionals. The fair was overwhelmed by a huge number of  job seekers.

    Gone are the good times for the employment market

The overwhelming tide of unemployment triggered by the financial tsunami has not only dealt a heavy blow to the once glamorous Wall Street, but has rapidly spread to every economic sector of the Unites States. Statistics from the US Department of Labor show that more than 1.2 million people have lost their jobs so far this year, pushing the total number of unemployed to 10.1 million, a record high in 25 years. The unemployment rate in October surged to 6.4%, the highest since 1994. The number of people applying for unemployment benefits has also climbed to a 16-year high.

A sample survey carried out by the US National Association of Colleges and Employers on recruitment strategies of employers, spanning across all industries, shows that more than half of employers plan to reduce the number of graduates they will hire in 2009. Except for government agencies, which have seen no noticeable job-cuts, there has been a sharp decrease in the number of people working in agriculture, construction, trade and logistics. Recently, headlines of all major US media publications have been filled with news of enterprises cutting jobs. Big name Citibank is planning to lay off 50,000 workers, and three major US auto manufacturers are struggling on the brink of bankruptcy, warning that should they fall, there will be 3 million more lost jobs. Chinese students studying in America are beginning to feel an unprecedented level of employment pressure.

Liu Jianing, who graduated this year with a major in accounting from George Washington University, has just received an offer from a small company in Washington, DC. When talking of employment, she feels very fortunate that she could find a job so easily. In the past, accounting majors in America had no trouble finding work. Every year, quite a few Chinese students studying in the US would enter the top four accounting firms, including Ernst & Young and PricewaterhouseCoopers- that’s why accounting had become one of the most popular majors for Chinese students studying in America. However, this is no longer the case. The American job market has shrunk due to the impact of the financial crisis, and so graduates of popular majors, who used to have no trouble landing a job, are beginning to feel the pressure. Liu Jianing told reporters that of the 35 Chinese students majoring in accounting at her university, only four had received job offers; all the others are still struggling to find a job. She said that due to the gloomy situation in the employment market, she has had to lower her standards. She feels very fortunate to just have a stable job at a decent US firm, not having the luxury of weighing one firm against another, let alone hoping to find a position at one of the top four accounting firms.

A mechanical engineering major, who has chosen to use the alias Guan Yu, graduated last year and is facing the problem of finding a job. Asian Americans and Chinese students especially account for a large part of mechanical engineering majors since the number of local American students choosing mechanics as their major is relatively small. Therefore, it is not too difficult for those Asians to find employment. However, a lot of companies have frozen their recruitment plans due to financial problems this year, something which has put more pressure on the already fiercely competitive job market. Guan Yu has had to temporarily work part time for an auto engineering company while he waits for a better opportunity. “The pressure on employment comes from two factors,” he said. “One is that many enterprises are faced with problems in financing due to the tight credit caused by the financial crisis. Many, therefore, are forced to squeeze or even suspend their recruitment plans; the other is that a lot of companies are forced to cut jobs in large quantities due to the sharp decline in business caused by the economic recession. This has led to large numbers of experienced staff entering the job market. These people are preferred by employers, and so for inexperienced foreign students like me, the situation has become even more severe.”

During the interviews, the reporter learned that aside from the impact of the financial crisis, many US companies, worried about adjustments to relevant policies after the new administration is sworn in, have become on the defensive and have decided to suspend all recruitment activities. Moreover, the US government has raised the application fee for the H-1B work visa, a cost that is paid by the recruiting company, from US $1500 to US $5000, and has taken more measures to strictly implement the regulation that foreign students must leave America if they cannot land an offer within their OPT (optional vocational training) period, 90 days after graduation. All of these factors have made it more difficult for the Chinese students who want to work in the US.

　　China´s overseas students trapped in a dilemma

The reporter has learned that most Chinese students in the US wish to stay and work there. Even though they do not plan to stay for the long term, more than half prefer to work in the US for a period of time, in order to become familiar with the way that American companies operate and accumulate some work experience before beginning their futures back in China. However, this year’s employment situation has created a dilemma for a large number of graduating students: stay in the US or return to China.

As the initiator of this global economic recession, the financial industry has taken the hardest hit of all. Since Bear Stearns, Lehman Brothers, Merrill Lynch and the rest of the five major Wall Street investment banks have collapsed or merged one after another, the American finance industry has experienced an unprecedented surge in job cuts. The Wall Street Journal reported that according to estimates from relevant agencies, the US finance industry has laid off more than 100,000 employees, an action that makes it top of the list in terms of job cuts. A considerable number of Wall Street white collar workers with handsome salaries are facing the plight of unemployment while those who have been fortunate enough to secure their jobs for the time being have to worry about an uncertain future. Among them, a number of Chinese people struggling on Wall Street are considering switching to ordinary commercial banks or trying their luck in China. Finance has become a highly-sought-after major for Chinese students in recent years, but under the heavy pressure of the financial crisis, it has become increasingly difficult to find a job in America’s finance sector.

A finance major who uses the pseudonym, Wang Chen, left an online message a few days ago saying, “We are all trying to find jobs in the US, but for me the idea of staying here permanently has changed.” When the Wall Street financial storm came roaring along, Wang Chen and many other ambitious Chinese students who had planned to stay in America began to reconsider their ideal place for success.

At the same time, some local governments, financial institutes and private enterprises in China are planning to recruit employees from America. On one side, American companies keep slashing jobs, but on the other, Chinese enterprises are clamoring to attract employees. This has made more and more financial professionals of Chinese nationality and Chinese students consider going back to China for their career development. Incomplete statistics show that nearly 10,000 Chinese are working in financial sectors in New York, of whom 30% have lost their jobs so far. A large part of those now unemployed have planned to go back to China. Agence France-Presse has chosen the outstanding headline, “Go East,” to describe the phenomenon of Wall Street financial professionals preferring more and more to work in China.

Despite increasing calls to work and set up enterprises in China, there are still a large number of Chinese students hoping to work in America and only return when they have no other option available. Many Chinese students admit that it is challenging to find a job in America, but they deem it disgraceful to go back to China because most of them are the most outstanding among their peers, and find it demeaning to go back. That is why a lot of them have chosen to wait and see to what extent the American government’s US $700 billion bailout package will save the economy before deciding to stay or leave.

Professor Lubbers from the American University Washington College of Law thinks that currently the slowdown of the US economy as a whole has been pushing up the unemployment rate. Even local American students find it difficult to get a job. International students, including the Chinese, are facing more challenges to work in the US. Therefore in light of the current situation, many Chinese students are choosing to go back to China. But Professor Lubbers, who often comes to China to give lectures and exchange ideas, believes that given that the financial crisis has spread around the world, the employment situation in China may not be as good as expected. Especially when a large number of “overseas returnees” are swarming back to China, there will be severe competition for ideal jobs. For this reason, overseas students should take caution in the job seeking process.

　　Various ways to cope with the current crisis

When discussing the impact of the financial crisis on employment, several Chinese students being interviewed uniformly stress that it has never been easy to get a desirable job. No matter how things change, the key remains in the abilities and qualities of the job-seekers.

Wang Jiaxi, who is now studying at American University Washington College of Law, is not in a rush to get a job like many other Chinese students. Instead, she spends much of her time in the library. There is no doubt that the financial crisis is having an impact on the job market; they have carried out in-depth case studies and discussions on the cause of this crisis and its impact, she said. She believes the economic situation is beyond the control of individuals who can only remain on the receiving end of changes, but an individual can have full control over his or her own studies. Most US postgraduate degrees take two years to finish, some only one year. So Chinese students, instead of scrambling to send out resumes and rushing to job fairs, should stay calm and focus on their studies and make full use of their limited time to improve themselves. After all, quality and ability have the final say.

Wang, who received her bachelor’s degree from the Foreign Affairs University in China, says frankly that the economic law courses she takes are difficult for even local American students, let alone foreign students. That is why few Chinese students choose to study law. However, on the other hand, with the continuous development of Sino-US economic relations, there will be an increasing demand both in China and in the US for employees who are familiar with the US law and have a good understanding of China, so she expects bright prospects for her future. She says this winter vacation, she plans to apply for internships at law firms or international organizations in Washington, D.C. to try to get some work experience before considering looking for a job.

Whether they have already graduated and are working in America or are still students busy looking for a job, all Chinese studying abroad, except those who plan to go back to China directly after graduation, have their own ways of coping with the shrinking American job market. Many Chinese students will first consider making full use of the career services offices at their respective universities. Normally, universities establish long term cooperative relationships with government agencies and companies the reputations of which can all be guaranteed. The companies and agencies also prefer to accept students recommended by universities with which they have these cooperative relationships. Detailed information of these agencies is listed in the career services center for the students' reference. Accounting major Liu Jianing easily found her job through this channel.

Furthermore, since most US universities have flexible educational system stipulations, the foreign students who have trouble landing a job can choose to postpone their graduation or continue their study in an effort to avoid the effect of the financial tsunami. A Chinese student who goes by the pseudonym Li Bin, an economics major at the State University of New York, has applied to suspend his schooling this summer and plans to finish school one year later. “The pressure on employment comes from two factors,” he said. “There are no desirable jobs around, so I’d like to give myself a year’s leave and focus my attention on job hunting after the storm,” he said. In the US, it takes a short period of time to complete a Master’s degree. THe studetns do not have an income, and it is not easy to win scholarships. If you study for a Doctorate degree, it takes five years during which you can receive some salary. Therefore, a lot of Master’s degree students who cannot find a job and are unwilling to go back home, choose to study for their Doctorate degrees because it looks like they are getting paid to complete their studies.

The statistics released by the US State Department on November 18 show that the number of visas issued to Chinese students and visiting scholars has already for two consecutive years increased by 40%. The annual report issued recently by the American Institute of International Education shows that during the 2007-2008 academic year, the total number of foreign students in the US grew by 7%, reaching a record high of 623,800, of whom, the number of Chinese students showed the fastest growth with a total of over 81,000. The report also pointed out that for foreign students, business management remains the first choice of major, followed by engineering. Some experts and Chinese students in the US suggest that, even though the visa policy has been more relaxed compared to the previous years, Chinese students still have to be cautious in the timing and their selections of major when applying to study in the US. They should take into full account their personal circumstances and future developments instead of blindly following the trend. (US Correspondent: Ju Hui)

Translated by LOTO

 

Editor:Ying Yu