2024-08-17 01:00:44
A record number of students are graduating in China. At the same time, youth unemployment is rising.
Youth unemployment in China is increasing. 17.1 percent of 16- to 24-year-olds were unemployed in July, the statistics office announced in Beijing on Friday. This is a significant increase compared to June, when the unemployment rate in this age group (excluding students) was 13.2 percent. This is also the highest figure since December 2023, when the authorities changed their calculation method.
Youth unemployment reached a record high of 21.3 percent in June last year. This prompted the authorities to first stop publishing the closely watched indicator and then to change the 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 twelve million students graduated this summer – a record number. The difficult situation on the job market is forcing even young Chinese with degrees from top universities to take jobs in remote rural areas.
There is no sign of a rapid improvement. Several economic indicators signal that the world’s second-largest economy after the USA could lose momentum in the second half of the year. It is battling one crisis after another, from a looming trade war with the USA and the European Union to an ongoing real estate crisis and sluggish consumer confidence.
The Communist Party fears that a job crisis among young people could raise doubts about the leadership’s economic competence. President Xi Jinping said this year that finding jobs for young people is a top priority. He expressed concern about their bleak employment prospects.