BEIJING: China is grappling with an alarming surge in youth unemployment, reaching an unprecedented record high as the nation’s post-pandemic revival faces setbacks.
According to official figures, the jobless rate among individuals aged 16 to 24 in urban regions soared to 21.3% last month. This disconcerting trend coincides with the feeble growth of the world’s second-largest economy, which expanded by a meagre 0.8% in the second quarter ending in June, according to the BBC.
The National Bureau of Statistics revealed that China’s year-on-year economic growth for the same period stood at 6.3%, surpassing the first quarter but falling short of analysts’ projections.
Qian Wang, the Asia Pacific chief economist at Vanguard, expressed disappointment, especially regarding retail sales and housing investment, stating this reinforces the notion of persistently feeble underlying growth momentum.
The spotlight is firmly fixed on youth employment as a staggering 11.58 million university graduates are poised to enter the Chinese job market this year.
The urban youth unemployment rate has been steadily climbing for several months, attributed to various factors, including a mismatch between the skills graduates possess and the current job market demands.
According to Dan Wang, the chief economist at Hang Seng Bank China, unemployed young people constitute a mere 1.4% of the potential workforce in urban areas.
Nonetheless, she emphasized the necessity for more direct policy responses to address youth unemployment due to this vocal segment of the population expressing their discontent online.
She further warned that their dissatisfaction with the prevailing circumstances could potentially trigger a broader loss of confidence in the economy.
China began publishing youth unemployment statistics in 2018, albeit without providing data on the employment status of young individuals in rural regions.
In March, Chinese Premier Li Qiang stressed the need to redouble efforts to achieve the 5% economic growth target for the year, acknowledging the formidable challenge ahead despite signs of stability and an upward trajectory in the economy.
