Youth unemployment in China rises sharply
Youth unemployment in China is rising. 17.1 percent of 16- to 24-year-olds were jobless in July, the statistics bureau reported on Friday in Beijing. This is a significant increase from June, when the unemployment rate in this age group (excluding students) stood at 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 publication of the closely watched indicator and then change their methodology. The 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.
Around 12 million students graduated this summer - a record number. Even graduates from top universities are being forced to take jobs in remote rural areas due to the challenging job market.
There's no sign of a quick recovery. Several economic indicators suggest that the world's second-largest economy could lose momentum in the second half of the year. It's grappling with one crisis after another, from a looming trade war with the US 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 grow doubts about the leadership's economic competence. President Xi Jinping said earlier this year that finding jobs for young people was a top priority. He expressed his concern about their bleak employment prospects.
The percentage of graduates from top universities struggling to find urban jobs due to youth unemployment is concerning. Despite President Xi Jinping's emphasis on addressing youth unemployment as a top priority, it constitutes a significant percentage of the 16- to 24-year-old age group.
