Abstract
This study examines the influence of higher educational reforms in the People's Republic of China on human resources, the labour market and the employment situation of university graduates, and investigates their interactions within a complex web of network relationships as between government/private employment agents, university systems and potential employers. An in-depth case study was conducted in Yantai, which is a medium-sized city located in Shandong Province, in eastern China. This research reveals the graduate market is still immature and identifies three gaps that contribute to the employment difficulties of university graduates: (a) a gap between what graduates are taught at university and short-term ‘usable’ skills favoured in the labour market; (b) between the changing society and the perceptions and expectations of strategic actors and (c) judgement of what constitutes useful knowledge. It argues that as the role of the state recedes, the part played by other strategic actors should be clarified and enhanced.