In an apparent endorsement of employment over further education, a MOE spokesman said that Chinese students this year, have a "clearer mind" regarding their development route.

"The entrants for this year's postgraduate exam have not risen as sharply as in previous years. The number of examinees is equal to that of last year," said the spokesman.

China's annual national postgraduate qualification exam kicked off on Saturday. Nearly 1.3 million people applied to attend the two-day exam, only 7,000 more than last year and 714,000 of them are students from colleges and universities. Last year's figure was up nine percent over 2005.

The spokesman said people had previously taken for granted the idea that postgraduate students had brighter employment prospects.

"Although this has not proved the case, a large number of undergraduates still choose postgraduate study to delay entering into the fierce competition for jobs," he said.

He said universities had strengthened personal development counseling and employment guidance in recent years, urging students to "soberly consider" their development path and encouraging them to learn more skills in the workplace before choosing further education.

"One can understand what he really needs to learn after practical work experience," the spokesman said.

The advice is easier said than followed. The number of college graduates this year will be close to five million and there are not enough jobs to go round. As a result, more graduates have furthered their studies to gain a competitive advantage, as the central government continues to champion innovation.