Chinese youth are grappling with the escalating economic turmoil as the unemployment crisis reaches unprecedented levels. Alarmingly, an enormous gap has opened between college graduates and the number of available service jobs.

In June, the youth unemployment rate soared to a staggering 21.3%, a significant jump from the 13.17% average in 2022. This alarming situation has prompted many young Chinese to turn to traditional practices for guidance and comfort, seeking solace and hope in online and offline methods believed to bring luck, prosperity, and wealth.

To enhance their "fu" (福), or fortune, youngsters are looking for auspicious objects that carry the promise of peace, prosperity, health and happiness such as live streamed temple experiences, incense burnings and good luck charms.

Cracking the Case: Why is China’s GenZ turning to lucky charms?

In the heart of China, a generation born between 1995 and 2015 is seeking solace in the whispers of fortune.

College graduates in China have surged by over 40% in the past decade, reaching a record-breaking 9.07 million in 2022. While the service sector accounts for over half of China’s GDP, job growth in this sector has slowed considerably in recent years.

The COVID-19 pandemic has had a more profound impact on China than many experts anticipated. The country’s robust economy is facing economic headwinds, and young people on the cusp of entering the workforce are facing a period of uncertainty and struggling to find a way of livelihood.

Here’s a closer look at some of the key factors contributing to these challenging times.

Navigating the Storm of Economic Uncertainty

China, the world’s second-largest economy, has not been spared from the global economic downturn. The pandemic's impact has been particularly severe, disrupting supply chains, dampening consumer spending, and hindering job growth.

The service sector, which traditionally absorbs a significant portion of new graduates, has witnessed a slowdown in job growth, further exacerbating the employment challenge. The mismatch between the skills of graduates and the demands of the job market has left many young professionals feeling disillusioned and uncertain about their future prospects.

The Unemployment Conundrum

China’s higher education sector has experienced explosive growth in recent years, resulting in a surge in the number of college graduates. In 2022 alone, a record-high of 9.07 million students entered the job market, facing stiff competition for a limited number of openings.

The ripple effect of China’s youth unemployment crisis extends beyond economic hardship. As UNICEF has warned, high unemployment rates can ignite social unrest, particularly in regions with a large youth population.

The Rising Burden of Living Expenses

Despite the economic slowdown, living expenses have not decreased in China. Housing costs, particularly in major cities, have continued to soar, placing a heavy burden on young adults.

The rising cost of living, coupled with the challenges of securing stable employment, has left many Gen Z individuals feeling financially insecure and anxious about their future.

The Magic of Lucky Charms & Power of Tradition

Live streamed temple experiences, echoing ancient rituals like incense burning and lighting lanterns, are surging in popularity among China’s youth.

This virtual approach to spirituality is gaining traction as many time-pressed young individuals find themselves unable to visit physical temples in person.

In addition to live streamed temple experiences, other popular methods for seeking “fu” include fortune-telling, feng shui, and wearing lucky charms. Here are 5 good luck charms that the youngsters are embracing.

Money Cats & Good Luck Phone Cases

Caishen, or literally “Money God” (财神) are believed to attract fortune and prosperity. Money cats, or Japanese beckoning cats are said to bring good luck.

“I buy ‘good-luck’ phone cases all the time. They mostly have money cats or money gods on them, or sometimes literally the words ‘money come [to me]’ printed on them,” Lily Jiang, a post-90s woman who works in technology told Jing Daily.

She added, “Many of my friends use some sort of Money God variation as screensavers. For the older generation, there’s the superstition element. But for us, it’s a lighthearted way of entertainment that we can all relate to.”

Digital Wooden Fish And Virtual Praying

Wooden fish, or Chinese temple blocks, are an integral part of Buddhist rituals, recitation of sutras, mantras, and other sacred texts. In fact, a popular Chinese wooden fish app on the Apple app store has been downloaded over 600,000 times.

“Aside from physical goods, young Chinese people are turning to apps when they can’t control what’s going on in the real world. There are apps for digital incense burning (云烧香), digital wooden fish (电子敲木鱼), digital praying to Buddha (云拜佛). Everything that the older generation did in person, kids now do online,” said Jiang.

Chinese Luck Coins And Buddha Statue

Three Chinese lucky coins, bound by a crimson cord, attract fortune. It is believed pointing them in your home’s Southeast corner or tucking them into your wallet helps you unlock a wealth of riches.

Buddha sculptures come in diverse forms, but the Laughing Buddha, also known as the Happy Buddha, is a symbol of good luck. His round belly and broad grin is a symbol of prosperity and abundance.

Lucky Lanterns & Burning Incense

Over 500,000 virtual lanterns have been illuminated virtually, a report by D-pai, a leading Chinese media outlet says. Participants can actively engage in these virtual rituals by making symbolic monetary offerings, adding a touch of genuineness to their digital devotion.

With a modest gift of $0.81, individuals can engage in the sacred act of incense burning, while a slightly larger gift of $1.36 allows them to light a lamp, further deepening their immersion in the ritual and strengthening their spiritual connection.

The Lucky Red Envelope

The custom of giving red envelopes, known as hóngbāo, originates in some of the oldest stories of Chinese New Year. These aren't just ordinary envelopes; they are vessels of good wishes and symbols of prosperity. The true significance lies not in the gift's monetary value, but in the envelope itself.

Only crisp, new notes should be put into a hóngbāo. Red envelopes are not just for gifts, but help boost personal prosperity too. Place an ancient coin inside, a symbol of positive fortune. Welcome wealth into your home with red envelopes, or carry one in your purse for a constant flow of abundance.

The Ripple Effect: How Joblessness is Reshaping Consumer Trends

Despite facing a challenging economic environment with high unemployment rates and sluggish growth, China’s Gen Z is embracing leisure activities and spending more on experiences like travel, beauty services, and entertainment.

“When the job market is that bad, why are we struggling and giving ourselves a hard time?” recent college graduate Yang Zhifeng, 22, told Time Magazine. “This is a good time to rethink what lifestyle fits us better and makes us happier.”

Undeterred by economic woes, they prioritise leisure pursuits, such as entertainment, travel, and personal care outpacing other discretionary expenses. In fact, Gen Z is expected to account for half of all global tourism spending by 2025.

According to research by consultancy Mintel Group Ltd, consumers born after 1995 spend more on items such as movie tickets, beauty services and visits to bars and sporting events. The survey reveals 40% of youngsters spent more on leisure in August 2023 than in the previous month.

Leisure Pursuits

Gen Z’s preference for leisure spending is likely due to a number of factors, including:

A desire to escape from reality: With high unemployment rates and social unrest, young people in China are increasingly turning to leisure activities as a way to escape from the pressures of daily life.
A shift in values: Gen Z is less materialistic than previous generations and places more value on experiences. They are more likely to spend their money on activities that they enjoy, such as travel, concerts, and sporting events.
The rise of social media: Social media has made it easier for Gen Z to discover and share information about leisure activities. This has helped to fuel the trend of spending on experiences.

Impact on Businesses

Gen Z’s spending habits are having a significant impact on businesses across a number of industries. For example:

The travel industry: The travel industry is benefiting from Gen Z’s increased spending on travel. A remarkable share of American millennials and GenZers (70%) prioritise travel experiences that are off-the-beaten-path, while in China, this trend is even more prevalent with 90% of travellers seeking such experiences.
The beauty industry: Gen Z consumers are more likely to spend their money on skincare, makeup, and hair care than older generations. A January 2021 survey on China’s beauty and skincare market revealed that nearly 60% of respondents used cosmetic products at least three to five times a week, with over 38% using them daily.
The entertainment industry: Spendings on music, movies, and video games have shot up. In March 2021, nearly half of China's Gen-Z consumers reported spending money on mobile games in the preceding six months. Online music streaming and karaoke are also popular pastimes among China’s younger generation, with over 35% of consumers paying for these services recently.

As GenZ earn more money, they are likely to spend even more on experiences. This trend is likely to have a major impact on the economy, as it will create new jobs and opportunities for businesses.

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A Glimmer Of Hope: 5 Good Luck Charms Chinese Youth Are Using to Beat Unemployment