Tough job market teaches China´s graduates a lesson in life

The situation has been exacerbated by the global financial crisis, which has seen 20 million migrant workers lose their jobs in cities, and many factory closures due to weakening foreign demand.

"Why don't the graduates consider to work in small domestic private companies, which also need talent," asks Ji Baohong, a deputy to the Shanghai Municipal People's Congress.

But many graduates see this as a last resort, even if the pay is good.

"If I am employed in a small private company, I will worry whether it will close some day," says Yan.

Only 5,500 students had registered on the "internship bases program" website as of Monday.

Wu Kemin, Communist Party secretary of the Shanghai Institute of Foreign Trade, says their "high expectations" are understandable. "They spent a lot of money on their education, and of course they'll expect a good return."