China’s youth unemployment is so bad that Gen Z job-seekers are paying $7 a day to pretend to work in an office

Fresh Gen Z graduates in China are leaving universities with strong credentials, only to run headfirst into a sluggish job market that makes securing employment feel almost impossible. The crunch has gotten so intense that some young people are now paying to sit in mock office spaces just to fill their days.

These spaces, operated by the Pretend to Work Company, charge between 30 and 50 yuan a day — about $4.20 to $7. While that may not sound steep, China’s average annual salary outside the private sector hovers around $16,000. Attending a fake office Monday through Friday could cost more than $1,800 a year, a heavy burden for jobseekers with no income. Still, the sites have become gathering spots for unemployed Gen Z workers. Some use them to launch side projects or apply to job postings, while others simply show up for the sense of routine and companionship. The setups often come with access to computers, plus perks like free snacks, drinks, and lunch.

According to the BBC, these faux workplaces are springing up in major Chinese cities including Shanghai, Shenzhen, Nanjing, Wuhan, Chengdu, and Kunming. With youth unemployment stuck at 14.5% for 16- to 24-year-olds, many see the shared spaces as a healthier alternative to being isolated at home. Experts say the arrangement, while unconventional, can help young people stay engaged with work-like environments and perhaps spark new opportunities.

“The phenomenon of pretending to work is now very common,” said Christian Yao, a senior lecturer at Victoria University of Wellington’s School of Management, in an interview with the BBC. “Because of economic transition and the gap between education and the labor market, young people need these spaces to think about their next steps or to take up odd jobs as a bridge. Pretend offices are one of those transitional solutions.”

China’s Gen Z employment struggles aren’t new. The pandemic magnified long-standing difficulties, and in 2023, youth unemployment was estimated to have reached as high as 46.5%, according to Peking University economist Zhang Dandan. After three straight months of record highs, Beijing stopped publishing official data altogether. That estimate included some 16 million young people who have effectively opted out of the workforce by “lying flat” — living with minimal effort rather than chasing careers in a highly competitive environment.

The government has tried to respond by tightening oversight on university majors. Since 2011, the Ministry of Education has warned that programs with employment rates below 60% for two consecutive years risk being eliminated. In turn, some universities have reportedly pressured graduates to falsify their employment status to keep academic departments alive, further complicating the picture of China’s true youth job market.