China struggles with addressing the high rate of joblessness among its younger population.
In the current situation, China is dealing with a significant surge in youth unemployment, with stats revealing an alarming 18.8% unemployment rate among individuals aged 16 to 24 in July. This is a rise from the 17.1% rate observed in July the previous year. Youth unemployment is currently seen as one of China's major economic hurdles. In May, President Xi Jinping made it clear that this issue required urgent attention, labeling it a top priority.
Previously, the Chinese authorities had reported a staggering 21.3% youth unemployment rate in June 2021, but opted to halt dissemination of these figures afterwards. Later, in December, they changed their methodology, omitting students from their calculations, and resumed sharing the numbers once again.
The unemployment rate among individuals aged 25 to 29 stood at 6.9% in August, a slight increase from the 6.5% rate recorded in July. However, it's important to note that these statistics only present a fragmented view of employment situations in China, as they only pertain to urban regions.
Besides youth unemployment, China is also grappling with a severe housing market crisis and trade disputes with western countries. Analysis of recent economic indicators suggests that China's post-pandemic economic rebound, following the relaxation of stringent COVID-19 regulations, has been sluggish.
The Chinese government's decision to exclude students from unemployment calculations in December potentially influenced the reported decrease in youth unemployment rates. Addressing youth unemployment is crucial for ensuring a prosperous future for China's youth, who will be the backbone of the country's economy in the coming years.
