Job hunters look for employment information from newspaper at a job fair in Beijing in early 2008. [File Photo: xinhuanet.com]

Beijing's freshly employed graduates are choosing to stay vigilant in a job market deeply-affected by the global financial crisis.

A record number of 5.59 million people graduated from universities and colleges this year and up to a quarter are still struggling to find a job, according to the Ministry of Education.

Those who have successfully found employment are now adapting themselves quickly to cope with a harsh environment as the global financial crisis bites into China's economy.

An accounting firm's newly-recruited 23 year old employee, who wishes to remain anonymous, said his firm, one of the largest in this business, has already cut back on overtime and business travel, though his basic salary has remained the same.

The employee said his firm had laid off a number of people in November, and plans another round of job cuts next Spring.

"It worries people a lot, particularly those newly employed workers like me. No one knows who will be the next unlucky guy. Everybody has to work even harder so as to avoid being fired."

He said the most obvious change which has taken place in his firm is that no one leaves for noon break even after 12:30, and most people remain at their seats to continue with their jobs, including those higher-level workers.

He said the company business has been drastically declining since September. The company didn't recruit any new staff and cancelled plans to recruit 100 interns. Expectations of a pay rises in 2009 has also been dampened.

Some of his friends looking for an internship as part of their final year at university are finding it extremely difficult, he said.

"If I was dismissed I might go back to university to study my MBA, although I have just completed my undergraduate program. Or being self-employed selling socks, as I already have planned how to conduct a business like that." he said half jokingly.

He pointed out that he would face a hard time looking for another job if he really was dismissed, not being "fresh" enough to benefit from the national incentive policy for new graduates and on the other hand not being experienced enough to compete with others in the heated competition of the job market.

Self-employed graduates have also affected by the financial storm. As the global slowdown bites, self-employed graduates such as Xu Yi know it will only get worse.

Xu Yi, 22, is a self-employed 2008 graduate, working as a partner with two other graduates in a small logistic company. The financial storm has "raged over" Xu's business.

"Our business has faced big trouble caused by the sharp drop in the number of counterpart sales. Influenced by the financial storm, the clients of publishing companies, particularly in the south of China, are not able to pay the money they owe as their companies are going bankrupt. The storehouse we rented to store printed works has been left unused."

"It is almost impossible that local authorities will be able to finance all small and medium enterprises during this crisis period", he added.

He further explained that any mortgagees in China, require an applicants' house or apartment as collateral. This real estate usually includes the life savings of ordinary Chinese people. Therefore, banks have refused to finance the group of freshly employed graduates.

Xu went on the say 'The only thing I can do to save my business is to cut back on salaries and minimize expenses. If our business was to go bankrupt, I may go back to University to study my Masters degree."