Will retirees be job market winners as China targets social insurance dodgers?

As flood of graduates looks for work, employing retirees offers Chinese businesses a way to avoid social insurance costs

Increased scrutiny of businesses in China that evade their social insurance obligations looks set to further boost the employment of retirees, prompting widespread concerns as a record number of university graduates tries to find work.

It all came to a head recently when recruitment notices put out by the McDonald’s fast food chain, which has been employing retirees for years, sparked an emotional response on Chinese social media platforms.

“The logic behind it is simple – hiring retirees means companies don’t have to pay social insurance contributions,” one user wrote on the Weibo microblogging platform.

Another complained: “If this becomes widespread, elderly people can have double pay, but opportunities for younger people will shrink.”