Graduates face jobs headache this summer

Lu Yuan, a college student majoring in civil engineering at Beijing Jiaotong University, is worried about his employment prospects this summer.

"Location is my priority when looking for jobs," he said. "Considering my major, I would like to work for a State-owned company in Beijing."

Lu expects to be paid an annual salary of 120,000 yuan ($18,370) in his first job, but is likely to struggle as a record 7.7 million young people will leave higher education this summer amid a slowing economy.