“If you want to change the world, change education.”- Nelson Mandela

An emerging educational trend in China, the most populous superpower in the world, is upending many traditional beliefs about the cost-to-value proposition of a university undergraduate education while providing a robust vocational educational model, which could change the trajectory of global higher education norms. Currently, a record high of 11.58 million students, an increase of 820,000 students from 2022, graduated from college in China this 2023 summer. Combined with students who graduated in 2022 and have not yet found jobs, the official youth unemployment rate in June 2023 exceeded 20%, an alarming and historically high rate. China’s economic downturn continues, triggering massive layoffs of 10-50% in various sectors, signaling increasing unemployment rates for China’s youth.

Many recent university graduates are subsequently turning to low-paying, low-skilled jobs like food delivery and ride-share driving to make ends meet. Despite China’s grim youth employment outlook, vocational school graduates are highly desirable, more likely to secure jobs in industries poised for growth, and boast respectable salaries. The employment rate of 38,078 July 2023 graduates of Jiangsu Union Technical Institute is 96.85%, which is astonishing since these students were from the bottom tier of Gaokao scorers and considered low academic achievers.

Campus of Guizhou Equipment Manufacturing Polytechnic

Approximately 40% of the number of higher education graduates this year, 4.7 million, come from vocational schools. According to China’s Ministry of Education, the employment rate of graduates of vocational colleges in the past decade has been above 96%, and that of higher-ranked vocational colleges has been above 91%. In the fields of modern manufacturing and service industries, along with emerging technological sectors, more than 70% of the newly added personnel are graduates of vocational colleges. Also, the income of higher vocational school graduates after six months of employment is noticeably higher than that of recent university graduates.

China’s Ministry of Education believes vocational education will play a crucial role in closing the wealth gap: “Vocational education has proven to be the most effective way to prevent poverty from passing down from one generation to the next.” Furthermore, rapidly evolving technology and emerging industries are leading to the creation of millions of new jobs. For instance, Jinan Engineering Polytechnic is a prime example of how vocational schools are addressing talent shortages in the job market by initiating new majors. Zhang Guangchuan, Vice President, explains the crucial need for skilled workers in the emerging industry of the industrial internet, which involves the incorporation of various technologies, algorithms, analytical tools, and networks into industrial and manufacturing environments: “The demand for talents in the industrial Internet is very strong, and it is expected that the demand for talents can reach more than 2.3 million in 2023, but the total number of talents trained is about 400,000, and there is still a gap of 2 million talents.” The creation and support of new, relevant majors plays a crucial role in equipping vocational students with updated knowledge and skills of up-and-coming technologies and industries. These majors include increasingly important topics such as AI, 5G technology, e-commerce, and Cloud Computing. A fundamental philosophy of vocational education is the belief that education is based on individual needs and requires tailoring the skills and knowledge of the students to the needs of the job market, both local and nationwide.

The adaptability of vocational schools is showcased through their current involvement in the lackluster semiconductor industry. Due to U.S. government technology restrictions and export limitations, semiconductor technology is considered a crucial bottleneck in China's economic and social development. Advancing the semiconductor industry has become a major strategic priority for the country. Statistics reveal a talent gap of over 760,000 professionals in China's entire semiconductor industry, while the number of students studying in this field is only around 6,400. To address this talent shortage, China's vocational education sector has started establishing relevant programs. In secondary vocational education, microelectronics programs have been introduced, and in higher vocational education, majors like integrated circuits and microelectronics have been established. Across the nation, there are approximately 100 specialized locations for these programs, with vocational bachelor's degrees offered in this field as well. In January 2021, Shenzhen Polytechnic University officially established the Institute of Integrated Circuits and introduced a new major—Integrated Circuit Technology. “In a high-tech factory… less than 20% of positions are suitable for university graduates, while over 80% of positions require graduates from vocational institutions”, explains Yu Fei, the Vice Dean of the School of Electronics and Communication Engineering at Shenzhen Polytechnic University, proving the success of this adaptability as vocational education graduates with such related degrees are highly sought after and crucial for the semiconductor industry.

How does China’s vocational education system effectively prepare students for a seamless and profitable transition into the workforce? Why is vocational education so successful in China?

China’s universities typically focus on theoretical knowledge, critical thinking skills, and general education, covering a broad range of topics within a specific major. On the other hand, vocational education specializes in developing practical skills, industry-specific knowledge, and hands-on training, preparing students for a swift transition into the workforce. Furthermore, on average, a vocational school education requires two fewer years to complete than a university education.

Three primary funding sources enable vocational schools to offer increasingly sophisticated resources to students at relatively low tuition rates: government grants, business partnerships, and special funds or plans. In 2023, top vocational schools like Chengdu Aeronautic Polytech received around 812 million RMB from the government, while Guizhou Equipment Manufacturing Polytechnic, a mid-ranked vocational school, received 267,315,400 RMB. In addition to these grants, many vocational schools are supported by special funds and plans that come from a variety of sources. Chengdu Aeronautic Polytechnic is a part of the prestigious Double High Plan, which supports the highest-ranked vocational schools in the funding of their top majors.

Data source: The official website of higher vocational colleges, the public platform of provincial budgets and final accounts

Vocational schools also receive funding from their partner companies, resulting in symbiotic relationships as students enter the workforce in these companies after receiving hands-on training opportunities that shape their skill-set development. In Guizhou Province, one school in particular took notice of the talent and worker shortages that the rising electric vehicle manufacturing industry was facing. Guizhou Equipment Manufacturing Polytechnic initiated a partnership with the largest electric vehicle manufacturer in the world, BYD, creating the first BYD-integrated industry vocational school in its province. Through this new partnership, Guizhou Equipment Manufacturing Polytechnic allowed students to learn alongside industry experts, develop specific professional skills, and participate in internships before graduating and seeking employment with BYD.

Students of Guizhou Equipment Manufacturing Polytechnic engaging in hands-on-practice with BYD vehicles

Although vocational schools have proven to be highly effective in preparing students for employment, the funding and financial allocation for these schools could be more substantial. In 2019, the Chinese government introduced standards of 12,000 yuan per capita fiscal allocation for vocational students. Despite the Chinese government's clear statement that "additional education funds are trending toward higher vocational education, gradually strengthening the investment in higher vocational education funds," the proportion of funding allocated to higher vocational education within the total education budget has not changed significantly. According to the 2020 National Education Expenditure Report published by the Ministry of Education, the total education expenditure in China in 2020 was 53,013 billion yuan. Although UNESCO estimates that the operating costs for vocational education are approximately three times higher than those for general education, vocational education received 2,871 billion yuan, accounting for 34.08% of the budget, which is less than half of the funding allocated to higher education overall. Higher vocational education received 2,758 billion yuan, representing 19.70% of the total for higher education, less than one-fourth of the funding for traditional undergraduate institutions.

Comparatively, vocational education accounts for approximately 70% of total government funding allocated for education in the United States, Australia, and Germany. However, even though the money allocated to vocational schools may be relatively low compared to the funding allocated to Chinese universities and Western vocational schools, this does not mean that this deficit impacts the quality of China’s vocational education. The Chinese proverb, “spending money where it’s most needed” perfectly reflects how the vocational schools achieve outstanding results with limited funding.

Growth areas that most vocational schools currently focus on include developing teachers, introducing new majors, and creating partnerships with business enterprises, among many others. This is why special funding plans only allocate money toward the development of the majors that the vocational schools specify in their applications. Many sources of funding, including government and special funds, maintain rigorous requirements and audits to ensure that the money allocated is successfully deployed toward these specific goals. This efficient approach to spending ensures that even with relatively low funding, impressive results may be achieved.

In the past, the government primarily invested in expanding the scale of China’s vocational education system, opening new schools throughout the country. However, China’s Ministry of Education states that it now intends to focus more on improving and optimizing the vocational education system.

China’s Ministry of Education is vigorously promoting the Dual-Qualified Teacher Program. The term "Dual-Qualified" refers to teachers who hold both teaching certificates and vocational qualifications. The fee standards for their teaching hours are generally higher than those of teachers at the same level, declared Zhang Hong, Deputy Principal of Zhejiang Institute of Economics and Trade.

China acknowledges the crucial role of educators in preparing and teaching the future workforce and continuously invests in them. Many vocational school faculty members are now required to have master's or even doctoral degrees and, in some cases, a background as corporate executives. In addition, all teachers are required to work at an industry-related job for 6 months every 5 years. In certain secondary institutions, over half of the faculty members are from the business sector. The schools offer attractive salaries and research conditions -- which are possible due to the funding that they receive -- making these positions appealing. Li Chengwei and Zhu Xiuli, a couple who held management positions at a large robotics company, joined the Guangdong Polytechnic of Science and Technology in 2020. Their presence significantly elevated the teaching and research standards of the institution. Yoo Jung-hong, Dean of the Robotics Institute at Guangdong Polytechnic of Science and Technology, says, "Within a year of their arrival, they transformed our student teams. They incubated a research team for us in the field of industrial robot integration, research, and social services." Vocational colleges are always enthusiastic about welcoming professionals with extensive work experience to become teachers, which has shown to be very successful.

Instructor at Shenzhen Polytechnic University

Geely Automotive is number four on the sales ranking of new energy vehicle brands in China and has an automobile plant in Jinzhong City. Geely Automobile has launched the modern apprenticeship "Factory Colonel" program, in which teachers from vocational colleges and outstanding craftsmen explore theoretical teaching methods and practical training in the factory together to ensure the most effective educational practices.

Another method of training vocational instructors is through national teacher competitions. At Hefei Technology School, developing high-quality instructors is a top priority, and most teachers are sent to the annual Anhui Province Teaching Ability Competition. “In the process of the competition, we can go deeper through one course at a time, and then realize the significance and importance of this course to our professional construction,” says Teacher Zhu Ling, from Hefei Technology School, explaining the importance of these competitions and how the experience of competing allowed her to better understand the skills needed to become a great teacher. Furthermore, teachers at Hefei Technology School undergo what they call the “double teacher” and “master” projects. Essentially, this is a mentoring system that enables older teachers to teach and pass down their knowledge to new, up-and-coming teachers, ensuring that the next generation of instructors is well-prepared to educate many future workforce students. This system of training ensures that teachers are well-qualified and experienced with the latest industry trends and practices, evolving workplace demands, and current technologies.

Vocational school students also participate in skills competitions on local, regional, and national levels, showcasing their abilities both individually and as teams as they take on many different challenges in their specified industries and majors. These challenges typically replicate the real-world experiences and obstacles of many demanding workplaces. Not only are the skills competitions themselves an outstanding tool that helps with the development of students, but the preparation leading up to many of the competitions teaches valuable lessons and skills to the students. As Huang Ping, a teacher at Chongqing City Management College explains, “Through these skills competitions, our students can effectively combine theory and practice in their learning process, enhancing their adaptability. So, after our students graduate, they can not only work in their original fields such as international freight and customs declaration but can also engage in customs consulting in manufacturing companies, or work in related roles in supply chain management companies.” This means that the way the skills competitions make the skillsets of students more adaptable only further raises the level of adaptability of the vocational education system in general.

Hefei Technology School preparing for a skills competition

This National Competition is very prestigious, gathering attention from many different audiences, industries, and companies that recruit young students with outstanding skills and abundant potential. Many competitions grant rewards and benefits for excelling in challenges, such as enrollment to some of the top universities in China, money for academic or business-related needs, and transformative honors and prestige, practically guaranteeing students with a promising career and future.

Liu Feng, who graduated from Nanjing Vocational College of Information Technology, has been interested in entrepreneurship and innovation since he was a child. While attending vocational school, he participated in the first student entrepreneurship skills competition, won first place and received start-up capital provided from both the competition and his school. With his newly acquired capital, Liu Feng established a successful electronics shop. Inspired by his newfound success, Liu Feng later launched Kuickwheel Technology Co., Ltd., and his innovative product, a ride-sharing scooter. Today, Kuickwheel has become one of the top three in the world in the field of "0-5km short distance travel" products. On top of benefiting participating students, these competitions are also advantageous to vocational schools. The rankings of many vocational schools heavily rely on the placements and awards from these skills competitions. High-ranking vocational schools may gain access to greater funding resources and qualify for different special funding plans, further bolstering the quality of their educational resources.

Development of Kuickwheel at Nanjing Vocational College of Information Technology

China’s economic future looks bleak. Students and their families are faced with uncertainty about the cost-to-value proposition of a university education. The crux of the struggles that China is currently facing can largely be attributed to the lack of blue-collared workers. However, within this uncertainty, the vocational education system in China is increasingly becoming a beacon of promise and success for China’s youth, which shall hopefully serve as a model for other countries, particularly those in the developing world. With this, the future of vocational education seems very bright and promising, not just for China, but for the whole world. Education and the development of job skills in a rapidly evolving technologically oriented employment scenario are challenges not only in China but also throughout the world, and the vocational education model has shown potential to becoming the key to addressing these global issues.

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