It is graduation season in China and with the number of graduates reaching a new high, it will be more difficult for them to find a job.

This year, 7.7 million college graduates will enter China’s job market. There will also be about 4.4 million graduates from secondary vocational schools and about 300,000 students returning from overseas. This will bring the total number of people looking for a job as high as 12 million.

A report by a leading job hunting platform in China suggests traditional industries such as machinery and construction are hiring less. Meanwhile, labor demand from what is called the “new economy,” especially I.T. and e-commerce, is growing.

The report also shows that first-tier cities are still the most popular employment locations. Shanghai tops the list, followed by Shenzhen, Guangzhou, and Beijing.