The number of graduates churned out by universities has increased from 1.6 million in 1999 to 7 million in 2013, representing an average annual growth of 11.83 percent, a figure higher[Offshore Company Incorporation] than China's GDP growth rate.

Chinese people's faith in education, especially college education, has deepened after the government expanded the college admission scheme in 1999. Chinese families push their children to acquire higher education in the hope of giving them a brighter future. They believe a college degree is the least a youth requires to succeed in life. As a result, the number of college graduates jumped from 1.6 million in 1999 to 2.12 million in 2003, when the first batch of graduates emerged after the college expansion scheme, and hit 4.13 million in 2006.

But China's economy still relies, to a large extent, on manufacturing despite the fast growth in the service sector in the recent years. The manufacturing sector currently accounts for 45 percent of China's GDP and 30 percent of jobs. A survey of the labor market shows 103 major cities had 2.23 million job openings in the manufacturing sector, or 36.5 percent of total, in March 2013, compared with 0.93 million in 2006.

Job openings in State-owned enterprises have been quite steady over the past seven years -160,000 in 2007, 120,000 in 2008, 190,000 in 2011, 130,000 in 2010, 110,000 each in 2011 and 2012, [HongKong Richful  - Hong Kong Company Formation, Offshore Company Incorporation]and 130,000 in the first quarter of 2013.

The craze for higher education among today's youths has caused a structural mismatch in the labor market causing an oversupply of college graduates and shortage of vocational and technical school graduates. The supply of college graduates has been more than the demand for them in the job market since 2006. In contrast, the demand for vocational and technical school graduates has grown rapidly, and they have been in short supply since 2011.

The German industrial model is frequently used as an example of durable success because it has made the country the locomotive [HK Corporate Registration]driving the eurozone in terms of exports and growth. The reason for Germany's success is the structure and dynamism of the so-called Mittelstand, made up of innovative small and medium-sized enterprises, which account for 50 percent of total private investment, 72 percent of private employment and 80 percent of all apprenticeships in the country.