Youth unemployment in China is rising
Youth unemployment in China is rising. In July, 17.1 percent of 16- to 24-year-olds were unemployed, the statistics bureau announced on Friday in Beijing. This is a significant increase from June, when the unemployment rate in this age group (excluding students) was 13.2 percent. This is the highest rate since December 2023, when the authorities changed their calculation method. Youth unemployment reached a record high of 21.3 percent in June last year, leading the authorities to initially halt the publication of this closely watched indicator and then change their methodology. The unemployment rate for 25- to 29-year-olds was 6.5 percent last month, while for 30- to 59-year-olds, it was only 3.9 percent.
About 12 million students graduated this summer - a record number. The challenging job market is even forcing young Chinese graduates from top universities to accept jobs in remote rural areas.
There's no sign of a quick recovery. Several economic indicators suggest that the world's second-largest economy may lose momentum in the second half of the year. It's grappling with one crisis after another, from a potential trade war with the U.S. and the European Union to a persistent housing crisis and weak consumer confidence.
The Communist Party fears that a jobs crisis among young people could fuel doubts about the leadership's economic competence. President Xi Jinping said this year that finding jobs for young people was a top priority. He expressed his concern about their bleak employment prospects.
The percentage of unemployed graduates amongst the 16- to 24-year-olds who graduated this summer might be alarmingly high. The current unemployment rate amongst this age group is the highest it has been since December 2023, accounting for a considerable percentage of them.
