China’s ruling Communist Party wants the country’s young people to be ambitious, work hard and prepare for adversity.

Li Jiajia just wants to win the lottery.

Demoralised by a weak economy, unfulfilling jobs and a paternalistic state, young Chinese such as Li are looking for pathways out of the carefully scripted lives their elders want for them, putting themselves at odds with the country’s priorities.

After moving to Beijing from her hometown in southeastern China in April, the 24-year-old Li found her new job as a content creator at a technology startup uninspiring. She said she has no desire to climb the corporate ladder, especially when the number of high-paying Chinese tech jobs is shrinking.

The ever-present role of the state in daily life is stultifying, she said. Though she wanted to be a journalist in high school, she gave up when she realised how heavily the government censors the media.

She says she knows she probably won’t win the lottery. But when she plays, at least she can dream of a better life—most likely abroad.

“I want to leave here and live the life I want,” Li said. “It won’t happen overnight, but for now, the thrill of scratching lottery tickets gives me a little break.”

Since China’s government cracked down on disaffected students in Tiananmen Square in 1989, most young people, who came of age in an era of rapid economic growth and rising affluence, have done what they are supposed to do—and been rewarded for it.

They studied diligently to get into prestigious universities, clocked gruelling hours at fast-growing companies and followed traditional expectations of career and family, riding China’s boom to material success.

Many are still doing that. But a growing number of middle-class urbanites in their 20s and 30s in China have begun to question that trajectory, if not reject it entirely, as prospects of upward mobility fade.

More than two years of harsh government Covid controls left some pondering the role of the Communist Party and other sources of authority in their lives, or even the meaning of life and who they aspire to be—questions many had never contemplated before.

Record youth unemployment that topped 21% this year has further dented confidence in traditional paths to achievement in China. Some, like Li, are also frustrated about other issues, such as violence against women in China or government efforts to prevent people from accessing foreign apps such as Twitter or Instagram.

Many are quitting their jobs and turning to meditation and other forms of spirituality. Some are moving far from China’s megacities to start lives anew in places like Dali, a southwestern city famous within China as a hub for digital nomads and dropouts.

Others are flooding fortune-teller stands and Buddhist temples in mountainous areas, or exploring Chinese and Western philosophers and writers from Laozi to Hermann Hesse. Some are throwing “quitting parties” with banners celebrating their newfound freedom.

“This generation has had a lot of resources invested in them,” said Sara Friedman, professor of anthropology and gender studies at Indiana University, who studies Chinese society.

“They have worked really hard. They have been pushed really hard. And to then say, ‘I’m stepping out of this rat race, I’m opting out,’ is a pretty radical decision to be making.”

From ‘lying flat’ to ‘letting it rot’

Social-media discussions about temple visits and anxiety—a central preoccupation of many young Chinese—have surged in 2023, according to BigOne Lab, a research firm.

About 34% of surveyed respondents in their mid-20s quit or were considering resigning from jobs in China’s consumer internet sector—a major employer of young people—in the first half of 2023, according to China’s job-seeking and social platform Maimai.

Playing the lottery has become especially trendy for 20- and 30-somethings, whose purchases of lottery tickets helped push sales to $67 billion from January to October, a 53% jump from the previous year and averaging $48 per person in China.

Catchphrases describing the mood have worked their way into everyday discourse. First, in 2020, was the arcane sociological term neijuan, or “involution,” which referred to situations in which people work hard and compete without anyone getting ahead.

That was followed by “touching fish.” The phrase, borrowed from a Chinese idiom, referred to executing small rebellions at work, such as taking long toilet breaks, doing online shopping or reading novels in the office.

Next was “lying flat,” a form of mundane resistance that involves dragging one’s feet at work or dropping out of the workforce altogether. Last year, the phrase “let it rot” spread to describe young people who have completely given up.

A survey conducted by Tsingyan Group, a research firm, last year found that approximately 96% of nearly 6,000 respondents in China were aware of people “lying flat” to various degrees in their vicinity. The concept held more appeal among people ages 26 to 40 than other Chinese, the survey showed.

“It’s a very passive form of resistance,” said Silvia Lindtner, an ethnographer at the University of Michigan. “It’s definitely a very difficult moment, but it could also be seen as a hopeful moment where there is pressure, in some ways, on the leadership.”

Echoes of the 1960s

In some ways the ennui resembles the “quiet quitting” phenomenon of postpandemic America—or, going back further, the rejection of social norms by young people across the Western world in the 1960s.

In those days, two decades of fast economic growth and wider affluence gave young people more choices than previous generations. Many responded by challenging their parents’ way of life.

In China, where open protests are rarely possible, young people are now rebelling in other ways.

“Lying flat is a latent resistance to the moral blackmailing of society,” said Amy Yan, a 27-year-old Shenzhen resident who once worked as a buyer for her family’s export business. When the business went bankrupt last year after her parents lost their assets in a financial scam, it reinforced her belief that she should give priority to her spirituality.

Even before the bankruptcy, she had decided that accepting the corporate grind and meeting traditional expectations of marriage and children would interfere with her desire to explore her spirituality.

Following the family crisis, she put her savings of $27,000 into supporting a tiny Taoist ashram she had started with a few fellow practitioners.

Coming into Beijing’s crosshairs

Communist Party leaders have long worried young people could stir unrest, as they did in 1989. The party needs young people to get on board with Beijing’s priorities, not just to keep the economy humming and avoid instability, but to help make China stronger in an era of great-power competition with the U.S.

In a speech at last year’s Communist Party congress, widely quoted in Chinese media, leader Xi Jinping laid out his vision for young people, urging them to have “ideals, courage, a willingness to endure hardship and a dedication to strive” to help “build a modernised socialist country.”

In a 2021 article published in the top party journal Qiushi, he specifically warned against “lying flat.” Discussions of the phenomenon have often triggered censorship online.

If all the young people who had dropped out of China’s labor force and relied financially on their parents were counted, China’s real youth unemployment rate could be as high as 46.5%, according to calculations earlier this year by a Peking University professor.

The Communist Party Youth League—with more than 70 million members—has published commentary on its official WeChat account criticizing college graduates for having too much pride. Job seekers “should not refuse to enter the workforce due to the difficulty of finding a job or choose to ‘lie flat’ out of fear of ‘involution,’” the article read.

Greater affluence—but an uncertain future

Until recently, China’s economic progress seemed to be unstoppable, with per-capita incomes surging to around $13,000 in 2022 from less than $1,000 in 2000, according to the World Bank.

But economic growth has slowed. Many economists worry China could get stuck in the “middle-income trap,” in which a country’s progress plateaus before it gets rich. Per-capita incomes in the U.S. were around $76,000 last year.

Academic research shows that social mobility for many groups in China has stalled, meaning it has become harder for people without connections to get ahead.

Many employers that young people gravitated to, including Alibaba, Tencent and ByteDance, have been shedding staff amid weak growth and government clampdowns on the private sector. Tech salaries have declined in the past three years, according to Maimai, and opportunities for initial public offering payouts have faded, leaving many who used to work “996” schedules—9 a.m. to 9 p.m., six days a week—wondering what the point was.

It is also true that many more middle-class young people—especially those without children and mortgages—can afford to drop out of the rat race today than in previous eras.

Some plan to leave: Net emigration from China, which fell to 125,000 in 2012 as the country’s economy boomed, rebounded to more than 310,000 in the first 11 months of 2023, according to United Nations data.

Others want to stay—but on their own terms.

Huang Xialu quit her high-stress job as a product manager at one of China’s largest video-streaming companies in April, so she could focus more on spiritual retreats. For a long time before that, the 33-year-old said she had struggled with a lack of purpose.

“I had a very urgent sense that if I didn’t listen to my gut and take a break to explore what I truly wanted to do in this world, it would be too late,” she said.

In the months following Huang’s resignation, she traveled to Dali, where she worked on a tarot-reading stand, took a training course in life coaching and learned to make pottery.

To Huang, lying flat is the opposite of being passive—it is a path for taking control of one’s own life when wading through uncertain terrain, she said.

Now she has become a certified life coach, helping individuals who are as confused as she was to find a way forward. Her income is less stable.

But “I haven’t regretted quitting for a second,” she said.

The share of Americans who own stocks has never been so high.

About 58% of U.S. households owned stocks in 2022, according to the Federal Reserve’s survey of consumer finances released this fall. That is up from 53% in 2019 and marks the highest household stock-ownership rate recorded in the triennial survey. The cohort includes families holding individual shares directly and those owning stocks indirectly through funds, retirement accounts or other managed accounts.

The data provide the most comprehensive snapshot yet of how the Covid-era explosion in investing has reshaped Americans’ personal finances. Stuck at home during the pandemic with extra cash, millions jumped into the stock market for the first time. The elimination of commission fees on stock trading across U.S. brokerages made investing cheaper than ever.

“It created a whole generation of investors,” said Anthony Denier, chief executive of mobile brokerage Webull U.S.

Most households own stocks through a retirement account, such as a 401(k), but more Americans in the past few years have invested in individual shares directly. Direct stock ownership increased to 21% of families in 2022 from 15% in 2019—the largest increase on record since the survey began in 1989.

As more households bought individual shares, those newer entrants invested with less money than longtime stockholders. The median value of households’ direct stockholdings nearly halved from 2019 to about $15,000 in 2022, adjusted for inflation.

When the stock market crashed in early 2020, Nick Luczak, then a sophomore at the University of Michigan, used the $57 in his checking account to open a brokerage account on Robinhood and buy whichever stocks he could afford. Once the pandemic forced him off campus to live with his parents, he began researching the market and buying more stocks.

“I said, ‘Well, I have all this spare time. There’s no reason at all I shouldn’t be trying to make the most money possible from this,’” Luczak said.

Luczak and his fraternity brothers started a group chat to discuss markets and stock picks. He said he made a profit investing in Amazon.com and watched his friends make, then lose, thousands of dollars trading meme stocks such as GameStop and AMC Entertainment Holdings in 2021. At one point, he considered becoming a day trader.

Now, Luczak, 24 years old, is focused on long-term investing. A salesman in Dallas, he is studying to become a certified financial planner.

Brokerages in recent years have made trading free and easy. Newer apps like Robinhood and Webull helped popularise zero-commission stock trading on smartphones. Charles Schwab, TD Ameritrade and E*Trade all eliminated commission fees for stocks at the end of 2019. Fidelity and Schwab introduced fractional stock trading in 2020, allowing individuals to buy and sell slivers of shares.

“It’s become more accessible,” said Ashley Feinstein Gerstley, a certified financial planner and founder of The Fiscal Femme. “We’ve been debunking in the last few years the myth that you have to be rich or work on Wall Street to invest.”

The share of households owning stocks increased across all income levels from 2019 to 2022. Upper-middle-income families recorded the biggest jump in stock ownership.

Over those three years, stocks climbed to new highs. The S&P 500 rose 16% in 2020 and 27% in 2021. Even after a 19% drop last year, the benchmark stock index notched gains over the three-year period. The S&P 500 is up 23% in 2023.

Stock-market gains and rising home prices helped boost household wealth. Households’ median net worth climbed 37% from 2019 to 2022, adjusted for inflation, the largest increase in the survey’s history. The median value of a U.S. household’s primary residence surged to $323,200 in 2022, surpassing levels from before the 2007 housing market crash.

Americans’ penchant for stocks is distinct. U.S. households held about 39% of their financial assets in equities in 2022, according to Organization for Economic Cooperation and Development data, a higher allocation than most other countries in the data set.

That appetite for stocks has been tested since the Fed began raising interest rates last year at the fastest clip since the 1980s and pledged to keep rates higher for longer. Investors have been flocking to assets with little risk such as money-market funds that are now offering some of the highest yields in years. Everyday investors, who rarely own bonds directly, are taking a second look at assets such as Treasurys and corporate bonds.

Fernando Soto, head of private banking in Chicago at Brown Brothers Harriman, said he has fielded more questions from clients about fixed-income investing and more requests from clients to buy bonds in 2023. In his personal portfolio, he increased his allocation to fixed-income this year.

“There’s a big shift,” Soto said. “This is the new normal.”

How has the higher rate environment shifted American household finances? The Fed consumer finance survey in 2025 will likely paint the fullest picture.

US: People are cutting back on tipping, frustrated by ubiquitous requests for gratuities.

As of November, service-sector workers in non restaurant leisure and hospitality jobs made $1.28 an hour in tips, on average, down 7% from the $1.38 an hour they made a year prior. The data is according to an analysis of 300,000 small and medium-size businesses by payroll provider Gusto.

The tipping slowdown is a gloomy development for all types of workers who rely on holiday tips as a chunk of their annual income. It reflects a broad frustration with the proliferation of tip requests at dry cleaners and bridal boutiques and even self-checkout machines that have sprung up since the pandemic.

Mary Medley, a Denver retiree who described herself to The Wall Street Journal in July as a unilaterally prolific tipper, is one of those who has become more discerning in recent months.

“It feels not as good to tip now that it’s popping up everywhere,” says Medley, 70 years old. “What started out to be a way to acknowledge excellent personal service feels like it’s become a way to help supplement worker compensation.”

There is a cost to the tipping slowdown, however, say economists and business owners. When people tip less, workers suffer, says Jonathan Morduch, a professor of public policy and economics at New York University.

“We’re in a situation where workers still want and expect and need tips to some degree,” Morduch says.

Up next

Some businesses are raising worker pay in part as a response to lower gratuities.

Dan Moreno, founder of Miami-based Flamingo Appliance Service, says he has noticed a slowdown in customers leaving tips for their repair people since the Journal spoke with him in July. The average base wages for his techs have gone up about 10% since then, though he hasn’t eliminated the prompt from point-of-sale machines.

“I don’t know if that’s because customers are just over it. I’ll tell you, personally, I’m a little bit over it,” Moreno says of how his own tipping habits have changed over the past year.

Meanwhile, governments have started to get involved.

In October, Chicago became the second-largest U.S. city to vote to require tipped workers to make the full minimum wage. The full federal minimum wage is $7.25 an hour, while the federal tipped minimum wage many bar and restaurant workers earn is $2.13 an hour. Legislation to get rid of tipped minimums is moving in eight states and measures are on the ballot in an additional four, according to worker-advocacy organisation One Fair Wage.

“There’s an ongoing rejection of the whole system by both workers and consumers who have been increasingly pissed about it,” says Saru Jayaraman, director of the Food Labor Research Center at the University of California, Berkeley and president of One Fair Wage, an advocate for higher wages for restaurant workers.

Restaurant workers earned an average of $3.83 an hour in tips and overtime in November, according to technology company Square, up 8% from the previous year. Between November 2020 and November 2022, that amount rose 50% from $2.36 to $3.54 an hour.

While governments, workers and owners wrestle with what to do about tipping, consumers have embraced the humor in tipping’s massive expansion into so many parts of life. Jokes mocking tipping’s proliferation have spread on social-media sites. In one image, a police officer holds out a tablet with different tip options after giving someone a speeding ticket. In another, someone pretends to ask for a tip for letting a stranger pet her dog.

Garrett Bemiller, a 26-year-old who works in communications, started to question his standard practice of always leaving 20% after being asked for a tip at a self-serve checkout station at an OTG gift shop in New Jersey’s Newark Liberty International Airport in April.

“We all know how absurd it is that it almost relieves some of that guilt in saying no,” he says.

He now always hits “No Tip” when he’s buying a black coffee—even when friends are watching.

Holiday tips

One area people might not cut back is tipping for the holidays.

Of the 2,413 U.S. adults surveyed by financial services company Bankrate, 15% said they planned to leave more-generous tips for workers including housekeepers, child-care workers, landscapers and mail carriers this year. About 13% said they planned to leave less.

Median amounts are so far up from last year across the six types of service providers Bankrate asked about.

“It seems that people view holiday tipping differently, perhaps because of the holiday spirit and also because of the regular interaction with many of these service providers,” Bankrate analyst Ted Rossman says.

Bemiller plans to give the super in his New York City building $100—not because he feels like he has to, but because he wants to.

“She helps me so much throughout the year and that tip seems genuinely justified,” he says.

Chinese leaders vowed to increase government spending and monetary support for the economy at an annual gathering, signalling they plan to stick with a measured approach to stimulus despite calls for bolder action.

The Central Economic Work Conference, which ended Tuesday, capped a bruising year for the country’s economy, which has struggled with a drawn-out housing crunch and weak consumption.

The trouble shows no sign of abating. After a pickup in the third quarter, data in recent weeks has pointed to slowing growth again as exports struggle, activity in the services sector slows and deflation deepens.

Still, Chinese leaders offered few specifics Tuesday on how they intend to reignite consumer and business confidence and reinvigorate growth.

Chinese leader Xi Jinping presided over the two-day meeting, where leaders urged officials to increase fiscal stimulus and help expand domestic demand, according to Chinese state media. They also acknowledged economic challenges, including “excess capacity in certain industries and weak sentiment in the society,” according to a readout of the meeting.

Chinese leaders also called for strengthening the resilience of industrial supply chains and accelerating the development of artificial intelligence, as well as other strategic industries such as aerospace and biotechnology.

The closed-door meeting, which is typically held in December each year to map out plans for economic policy-making, sets out the leadership’s growth ambitions for the following year, though the detailed targets won’t be released until March, during the National People’s Congress.

Though the overall tone of the conference was pro-growth, “it is still not a call for massive stimulus,” economists at Société Générale said in a note to clients after the readout was published. Instead, officials are emphasising the need to stabilise the economy and stem risks to growth, they said.

Many economists expect Beijing to anchor its growth target at around 5% in 2024, taking their cue from a meeting last week of the Communist Party’s Politburo, its body of top leaders. Policy makers emphasised the importance of economic progress, saying the country needed to “pursue stability through growth.”

This year’s target was also set at around 5%. Despite its difficulties, the economy looks set to hit that goal this year, but economists say maintaining that pace will be tough without bigger measures to stimulate the economy.

Beijing has taken some measures this year including interest rate cuts and channeling cheaper loans to firms to arrest the downturn but has so far failed to reverse a broad-based loss of confidence.

China’s difficult year contrasts with surprising resilience in the U.S., where buoyant consumer and government spending have kept the economy motoring despite aggressive increases in interest rates by the Federal Reserve. The latest data on jobs and inflation has stoked optimism that the U.S. will avoid recession and instead enjoy a “soft landing,” in which price growth slows to target without a steep rise in unemployment. That marks a reversal in expectations from earlier in the year when China was expected to easily outpace a cooling U.S. economy.

And there are fresh signs of trouble for China.

Business surveys showed factory activity slid deeper into contraction in November as domestic and foreign orders dried up, while activity in the services sector shrank for the first time this year as consumers cut back spending.

Exports rose just 0.5% on the year last month after shrinking for six months, highlighting the drag from slowing growth in the U.S. and Europe.

Weak domestic spending and bloated industrial capacity caused consumer prices in China to fall in November for the second straight month, deepening a bout of deflation that economists say could prove hard to shake if the economy doesn’t pick up soon.

China’s slow-motion property crunch shows few signs of abating. Some developers have defaulted on their debts and construction has stalled on millions of homes. Home prices fell in October and new investment in the sector is shrinking.

A central question for investors and economists is whether Beijing will experiment with novel stimulus approaches to shore up battered confidence among households and businesses.

At the meeting, Chinese leaders vowed to expand consumption and raise income for both urban and rural residents but offered little sign that they may pivot to giving cash handouts to households, despite repeated calls from policy advisers and economists to do so.

Instead, the government is seen as more likely to step up efforts to resolve the crisis in the property market, which remains a major drag on overall growth.

Chinese leaders called for equal treatment for developers to meet their financing needs—a likely reference to the perception that banks favour state-backed developers over private ones. They also urged accelerating the construction of government-subsidised affordable housing and urban village renovation projects.

Still, the meeting didn’t spell out a plan to help cash-strapped developers finish tens of millions of uncompleted apartments, a crucial step that economists believe will help restore household’s confidence in the government.

While officials aren’t expected to disclose a growth target until a political gathering next spring, economists and investors are already debating how aggressive Beijing will be with its 2024 goal.

Economists from J.P. Morgan predicted that policy makers will likely maintain a goal of around 5%, to signal a renewed focus on the economy. Robin Xing, chief China economist at Morgan Stanley, said he expects Beijing to set a target of 4.5% to 5% and pursue a stronger fiscal stimulus.

Others believe Beijing will stick to a more conservative target because of the headwinds facing the economy. Ting Lu, chief China economist at Nomura, said he expects China to aim for around 4.5%.

“I still think the Chinese government is quite rational,” said Lu, who cautioned that the economy hasn’t bottomed out and the actual growth rate could slip to 4% in 2024 from Nomura’s 5.2% forecast for 2023.