White Collar Work: A Shameful Occupation?
Two media stories caught my attention this week, both of which indicate a significant shift in our concept of a good job with a livable wage, particularly in the East. Beyond highlighting challenges faced by the professional individual today, they may foretell new hurdles for Western companies that have either set up shop in China or are planning to do so in the near future.
The first story, featured in Monday’s New York Times, captures the attitude of young Japanese professionals who no longer have the stability of a long-term corporate job that provides a paycheck adequate enough to cover Japan’s astronomical cost of living. Gone are the days of the post-World War II salaryman and a guaranteed permanent gig upon graduation; in this new era, just one job no longer seems to be enough. Journalist Gearoid Reidy writes:
For decades, the standard career path in Japan was to graduate from college, join a company, and to stay there until retirement—one job for life. But with salaries down more than 12 percent over the last decade amid an uncertain labor market, young, mostly single Japanese are increasingly making ends meet by working second or even third jobs. Some deliver leaflets or work in convenience stores. Some trade foreign currencies online. Others sell items on Internet auction sites. A survey in January by the Internet market research company Ishare found that almost 17 percent of workers ages 20 to 50 had a side job.
Source: “Young Japanese Seek Second, and Third, Jobs” NYT, Sept. 6, 2010
The second story, which has gained a lot of attention from both China’s netizens and mainstream media outlets but has thus far been overlooked by Western journalists is the apparent change in attitude about white collar jobs in China. According to Xinhua news agency:
Back in the early years of reform and opening up, large numbers of foreign-funded corporations came into view and employees at these companies carried with them a certain kind of glamour in the eyes of the nation because of their elegant attire, high incomes, and great quality of life. The public called them “white collar workers,” a word that came from the West. Now, to mention a white-collar worker conjures an image of dressing well on a crowded bus or subway and struggling to hardly afford a house. The term “white collar” has lost its appeal and become an embarrassing existence.
Source: “Red Collar Jobs Most Sought After in China” Xinhua Sept. 4, 2010
China’s media promotes another career, civil servant positions- or, “red collar jobs”- as being most in demand these days for their comparative stability in terms of job security, income and work-life balance. Unfortunately, for those coveting a hot red collar job in China, they’re quite difficult to come by. Chinese Entrepreneurs Network reports that, in 2009, 104 million people competed for 15,000 of these positions, with an examination ratio of 69:1.
So, what does this all mean to the changing landscape of work and how could it potentially impact Western companies doing business in China? Here’s my take…
- On a global level, white collar jobs are starting to get a bad rap. Wages for the bulk of white collar positions have remained stagnant while those at the very top are perceived to now make far more money than they are actually worth. Job security is no longer what it used to be, and fewer people are willing to work sixty hours a week at one company just to make ends meet. Finally, there are so few open positions available to begin with. Whether in the US, the UK, China or Japan, educated professionals are seeking alternatives either because they have to or because they don’t wish to give their lives away to a business that is not their own for a product that they don’t really believe in. This may be particularly true for the Millennial Generation, who seek more creativity, autonomy and opportunity to strike it rich while simultaneously doing some good in the world.
- Best of luck to hiring managers. While you may still get resumes from the top of the crop in terms of a college degree, you’re far less likely to encounter the truly innovative folks who bring game-changing ideas to the table- and that’s just what you’ll need in this economy. Additionally, because entry- and mid-level wages are no longer enough to pay the bills (particularly in big cities like Shanghai and Tokyo), you’ll likely have a lot of tired employees on your hands who are more dedicated to their second jobs or to building skill sets beyond those utilized in the work place- activities that offer a sense of promise over the long-term, which is more than you are giving them.
- In regard to Western companies doing business in China, having many of the major Chinese media outlets state that the Western white-collar model is “now an embarrassment” and that “red collar jobs” are favored is probably not a good sign for a few reasons. First, statements like these are, in my view, a direct rejection of the Western management style and corporate structure. What it says is, “we no longer look up to the way you do things. We’re going to do things our own way.” That would be China politely pointing to the exit sign. Second, the increasing popularity of a civil servant position indirectly points to a rise in state capitalism and the promotion of Chinese state-owned enterprises, which includes a stronger hand by China’s government in innovation, research and development. Economists and political scientists argue that government and innovation do not mix well together, but those observations often come from a Western lens. China’s different, I think, and it’s very possible that a state-owned Chinese company may very well bring us the next big universe-changing invention. Third, “red-collar fever” points to a rise in China’s nationalism, which has a tendency to intimidate both from afar and on-the-ground. Expat professionals who cannot communicate in Mandarin, who do not adhere to China’s ways and customs, and who do not have a strong circle of Chinese friends and associates may find it increasingly difficult to live and work in China. But, that’s just a guess.
My advice to white-collar workers- especially entry and mid-level employees- no matter what country you’re in or from? Become really, really good at something. Become so good at something that if you’re forced to go out on your own, you’ll still be in demand. Better yet, make alliances and venture out with them. Go beyond raising the bar; build a new one. Don’t be afraid to experiment with new forms and concepts of work. But hey, if you just want a comfortable gig with lifetime job security, I’ve heard that the ends of rainbows have pots of gold…
Have your say: Do you think that the global concept of white-collar work is undergoing a massive shift? If so, what does this mean for traditional corporations? What significance does the rising popularity of red-collar positions have in China? Is being a white-collar worker these days a shameful occupation or are these positions more coveted than ever before? What have you observed in your neck of the woods?
Aimee, good post, but I think you’re overselling “red collar” jobs. Nationalism has little or nothing to do with it. They’re favored largely because they have very creative expense accounts — my danwei can pay for everything — little performance pressure on young workers — hey, let’s skip work and see a movie — can easily lead to a “black collar” job — how else can I have two houses at the age of 30? — and because bank lending practices in the past 2 years have stacked the deck in favor of SOEs and quasi-governmental companies meaning that red-collar jobs are thriving.
I partly agree with Matthew. I know many who are trying hard for a civil servant job, but its mainly those who seek little work and afternoons playing mahjong. It’s also for the ‘under the table rewards’….
I believe that the ‘white-collar’ positions are still the most coveted, but many are just realizing how difficult they are to achieve here.
I live in a ‘blue-collar’ town – Nanchang, Jiangxi Prov., and believe me there are far too many Mercedes Benz, and BMW’s here for the few white collar positions that might occur at factories. Most of these ‘white collar’ guys are self made.
Matthew and Jim,
Thanks for reading, commenting and keeping me on my toes! You both bring up a very good point- perhaps the most alluring benefit of a civil service position in China are those under the table rewards and other unspoken perks, which I had failed to mention in the post. What’s interesting here is that those same perks are the ones being harshly criticized by China’s netizens on the few message boards that I checked out regarding this topic. On one hand, these red collar positions are coveted and yet on the other hand, they are looked down upon due to the perks and perceived corruption that you both mentioned.
Matthew, I would argue that the statements made by China’s media in regard to red collar jobs does indicate increasing nationalism or, at the least, a more critical stance toward the Western model. Additionally, wouldn’t you say that if more young folks are seeking a civil service position, that trend indicates increasing trust and/or reliance on government, less on private enterprise? Impossible to quantify and perhaps it is a stretch, but I think it’s something worth paying attention to.
Thanks for your questions, Aimee. I’d say that, again, this is not a nationalist turn but a realization that the foreign company cash cow has mostly gone out to pasture. While the government may say otherwise, the Laobaixing don’t see it as a matter of models but of cash flows. Many Japanese and Korean firms shuttered their factories here in Tianjin recently, and Western firms find it harder to do business and thus recruit fewer employees. That said, among the young college graduates I know a foreign company is *still* preferred to a Chinese company, but a job in a government company is preferred to one in a foreign company. The problem is that getting into a government company requires arduous tests or backdoor practices, so the foreign company job market, while shrinking, is still easier to enter than the “red collar” equivalent.
Apologies for a lateness to discussion, RSS was backlogged.
Answer: Title deflation.
The crest to the post-80s generation was the late 90s’ers (they don’t seem to have a common moniker – perhaps those 1978-1981) that stated deadfastly “I don’t want to work in a factory”. Coming out of an education system so under reform it would make a test-pilot sick turbulence was par-for-the-course. As was development. And not being grandfathered into a factory was a big indicator one was up-for-the-course.
And that’s when title deflation started. Because working in an office isn’t necessarily white collar. Indeed, it is decidedly blue collar, but worse. Shapeless concrete office block monstrosities lie witness to clueless untrained employees turning up to work for clueless untrained managers. Tasks menial, opportunities scarce. But, one was an office worker, and not employed by a state firm. Capitalism, or ‘self-determinism’ if translated slightly differently, didn’t end up that glamourous.
Now graduates seem hugely more sophisticated. A dead-end job is a dead-end job, and a decent one contains hope. Hope that just perhaps, one day, one will earn enough to make a down-payment on a slightly cramped apartment and not rely on one’s parents, let alone but a place for them of one’s own means. Title inflation perhaps, or life deflation equally.
Adding very late to the blog… I know.
The media here (just like anywhere) can sway thought. If the media says that white-collar is an embarrassment, then in the more traditional thinking folks and groups, it will become so. For many folks here, especially decision makers, CCTV can dictate the trends in thinking.
That’s definitely correct red-collar jobs are favored, because a large portion of society just wants the job that takes the least effort, responsibility, etc… it’s comfort, it’s security.
You said it best Aimee; be prepared to venture out on your own. Make connects, network, work on the brand that is “you”. Become an expert in a field…any field, but get to be known for someone who is good in one area and certainly you will have a higher percentage of opportunity.
New to the blog and am enjoying it..thanks.