Skip links
Youth unemployment

Youth Unemployment on the Rise in China as Graduates Flood the Labour Market

Youth Unemployment Soars in China: Graduates Flood the Labor Market with Alarming Impact | 2024

Young Chinese seek stability and purpose through rural revitalization.
Author picture

China’s youth unemployment rate surged to 17.2% in July 2024, marking the highest level since the National Bureau of Statistics (NBS) introduced a new method for calculating joblessness eight months ago. This increase, up from 13.2% in June, highlights the growing challenges facing the nation’s younger generation as they enter a fiercely competitive job market.

The jobless rate for those aged 16 to 24—excluding students—ended three months of consecutive declines, signaling renewed difficulties in securing employment. The NBS data, released on Friday, underscore the mounting pressures on young jobseekers in the world’s second-largest economy.

In December 2023, Beijing revised its method for calculating youth unemployment, excluding students from the data to “more accurately” reflect the job-hunting priorities of young people in China. Under the previous approach, which included students, the youth jobless rate had peaked at 21.3% in June of the same year.

The adjusted method saw the unemployment rate for the 16-24 age group drop to 14.9% in December, but the July spike suggests that the underlying challenges have persisted despite the statistical changes. The rise in joblessness coincides with a record 11.79 million tertiary graduates entering the labor market, overwhelming the already strained job market.

China’s youth unemployment rate hits new high as recovery falters

The economic landscape in China has been further complicated by the slow pace of recovery, forcing many fresh graduates to scale back their salary expectations by about a third. The overall unemployment rate for the country also increased to 5.2% in July, the first rise since February, indicating broader economic struggles.

NBS spokeswoman Liu Aihua acknowledged the difficulties faced by the job market, stating, “The employment situation has remained generally stable so far this year, but we should also see at the same time that pressure still exists. The structural contradiction of difficulties in both job seeking and recruitment is still prominent.”

The Chinese government has been increasingly focused on addressing youth unemployment due to its potential impact on social stability and economic growth. Lower incomes among young people could undermine plans for consumer spending to drive a sustainable recovery. At a recent State Council meeting, Premier Li Qiang emphasized the need to “stabilize employment for key groups,” including young graduates.

Two weeks earlier, the Communist Party’s Politburo, China’s main decision-making body, echoed this sentiment, urging that priority be given to university graduates seeking employment. Additionally, last month, the Central Committee of the Communist Party announced plans to “improve the system of employment support for key groups such as college graduates, rural migrant workers, and ex-service members.”

The challenges are not confined to the youth demographic alone. The NBS has also begun applying its new statistical method to other age groups, splitting the 25-59 age range into 25-29 and 30-59 segments. In July, the unemployment rate for the 25-29 age group, excluding students, was 6.5%, a slight increase of 0.1 percentage point from June, after three months of decline. The rate for the 30-59 age group was 3.9%, showing a marginal decrease from the 4% reported in June.

As China’s ruling elites continue to emphasize the importance of addressing youth unemployment, the country faces a critical juncture in balancing economic growth with social stability. The pressure is on to create opportunities for millions of new graduates entering the workforce, a task that will require significant policy interventions and economic reforms.

Leave a comment

This website uses cookies to improve your web experience.
Home
Account
Cart
Search