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Talent Demand in the Age of AI and the Necessary Reform of Traditional Education

Feb 14-2025   



*This article is based on a speech by Yao Yang, Professor at the National School of Development at PKU and Director of the China Centre for Economic Research.

 

What kind of talents do we need in today's world?

On the one hand, China has witnessed rapid industrial upgrading, and the share of manufacturing in the national economy has begun to decline, while the share of the working population in the manufacturing sector is also declining. In addition, the phenomenon of out-migration of labour-intensive industries is becoming more significant, and more and more Chinese enterprises are going overseas. This is a trend that will continue to accelerate, thus leading to a bound decline in the demand for traditional talents.

On the other hand, new domestic technologies and industries are emerging strongly, and in many areas, China has taken a leading position in the world, such as artificial intelligence, new energy and electric vehicles. Continued technological progress has led to a shift in our demand for industrial workers and talent.

 

Why should we reform education system?

At present, China's education system is almost entirely centered around continuing education, resulting in unimaginably fierce competition. This phenomenon has led society into a state of low-level equilibrium, and no one dares to break the cycle. Parents dare not let their children not participate in this kind of competition, because not participating in the competition means that they will be surpassed by others. Faced with these problems, however, we cannot blame the schools or the parents. The crux lies in the education system.

 

Why should we abolish the streaming system of secondary school examinations?

What are the disadvantages of the streaming system? It is unable to meet the labour demand of the present and future economic development. According to our survey, the current educational situation in vocational high schools is worrying. It is likely to gradually disillusion otherwise excellent students, and this effect is particularly evident among boys. About 70-75 percent of the vocational high school students come from rural households, and urban households are also dominated by children from low-income families.

In terms of educational attainment, people with general upper secondary education are much more likely to go on to higher education. In contrast, those who graduated from vocational high schools often drop out at this stage. As for those who do not continue their education, most of them end up unemployed after graduation and have relatively little chance of continuing their education.

Income data show that whether one receives vocational or general upper secondary education does not seem to have a significant impact on one's economic returns, which to some extent reflects the inadequacy of our education system.

 

Why do we need 10-year-compulsory-education?

The ultimate goal of the reform I am advocating is to introduce ten years of continuous compulsory education. It includes five years of primary school (ages 7-12), and junior high school and senior high school are combined into five years (ages 12-17). A continuous education system from primary school to senior high school will be established, and the bifurcation of the senior high school examination will be abolished. In this way, every child can complete ten years of continuous compulsory education. At the end of this period, if they wish to enter a vocational high school, they can enter the labour market at the age of 20 after three years of study. For top universities, an additional year of matriculation can be added as an option to alleviate the competition pressure.

 

Conclusion

To sum up, from an economic point of view, China urgently needs to develop a new talent cultivation strategy. While from a social point of view, the current high-intensity competitive environment may lead to a further decline in women's fertility. This has become a serious social problem, and we must take measures to break the existing low level of balance, and the solution lies in the necessary reform of the current education system

Talent Demand in the Age of AI and the Necessary Reform of Traditional Education

Feb 14-2025   



*This article is based on a speech by Yao Yang, Professor at the National School of Development at PKU and Director of the China Centre for Economic Research.

 

What kind of talents do we need in today's world?

On the one hand, China has witnessed rapid industrial upgrading, and the share of manufacturing in the national economy has begun to decline, while the share of the working population in the manufacturing sector is also declining. In addition, the phenomenon of out-migration of labour-intensive industries is becoming more significant, and more and more Chinese enterprises are going overseas. This is a trend that will continue to accelerate, thus leading to a bound decline in the demand for traditional talents.

On the other hand, new domestic technologies and industries are emerging strongly, and in many areas, China has taken a leading position in the world, such as artificial intelligence, new energy and electric vehicles. Continued technological progress has led to a shift in our demand for industrial workers and talent.

 

Why should we reform education system?

At present, China's education system is almost entirely centered around continuing education, resulting in unimaginably fierce competition. This phenomenon has led society into a state of low-level equilibrium, and no one dares to break the cycle. Parents dare not let their children not participate in this kind of competition, because not participating in the competition means that they will be surpassed by others. Faced with these problems, however, we cannot blame the schools or the parents. The crux lies in the education system.

 

Why should we abolish the streaming system of secondary school examinations?

What are the disadvantages of the streaming system? It is unable to meet the labour demand of the present and future economic development. According to our survey, the current educational situation in vocational high schools is worrying. It is likely to gradually disillusion otherwise excellent students, and this effect is particularly evident among boys. About 70-75 percent of the vocational high school students come from rural households, and urban households are also dominated by children from low-income families.

In terms of educational attainment, people with general upper secondary education are much more likely to go on to higher education. In contrast, those who graduated from vocational high schools often drop out at this stage. As for those who do not continue their education, most of them end up unemployed after graduation and have relatively little chance of continuing their education.

Income data show that whether one receives vocational or general upper secondary education does not seem to have a significant impact on one's economic returns, which to some extent reflects the inadequacy of our education system.

 

Why do we need 10-year-compulsory-education?

The ultimate goal of the reform I am advocating is to introduce ten years of continuous compulsory education. It includes five years of primary school (ages 7-12), and junior high school and senior high school are combined into five years (ages 12-17). A continuous education system from primary school to senior high school will be established, and the bifurcation of the senior high school examination will be abolished. In this way, every child can complete ten years of continuous compulsory education. At the end of this period, if they wish to enter a vocational high school, they can enter the labour market at the age of 20 after three years of study. For top universities, an additional year of matriculation can be added as an option to alleviate the competition pressure.

 

Conclusion

To sum up, from an economic point of view, China urgently needs to develop a new talent cultivation strategy. While from a social point of view, the current high-intensity competitive environment may lead to a further decline in women's fertility. This has become a serious social problem, and we must take measures to break the existing low level of balance, and the solution lies in the necessary reform of the current education system