Data released on Monday by China’s National Bureau of Statistics (NBS) showed the surveyed unemployment rate for people aged 16 to 24, excluding students, dropped to 14.9% in June from 15.6% in May, reported Reuters. The June figure marks the lowest level recorded in the past 12 months, according to the data.
The latest figures also showed a modest improvement across other age groups. The unemployment rate for people aged 25 to 29 slipped to 7.1% in June from 7.2% in May. Among workers aged 30 to 59, the rate eased to 4.0% in June from 4.1% in May, according to the NBS data reported by Reuters.
The data suggests hiring conditions improved at the end of the second quarter, particularly for younger workers who have faced a difficult job market over the past few years.
Why has China’s youth unemployment fallen?
The latest decline comes after several months of gradual improvement. In May, the youth unemployment rate had already fallen to an 11-month low before dropping further in June.
China’s labour market has remained relatively stable in recent months. Official figures released last week showed the overall surveyed urban unemployment rate fell to 5.0% in June from 5.1% in May. The government has set a target of keeping the urban unemployment rate at around 5.5% this year while creating more than 12 million new urban jobs, reported Reuters.
China revised how it calculates youth unemployment in 2024 by excluding students from the survey. Officials said the revised method provides a clearer picture of employment conditions among young people actively looking for work.
Despite the improvement, youth unemployment remains much higher than the rates recorded among older workers, showing that many young job seekers still face challenges in securing stable employment.
What does it mean for China’s economy?
The latest employment data arrives days after official figures showed China’s economic growth slowed more than expected during the April-June quarter.
The world’s second-largest economy expanded by 4.3% in the second quarter of 2026, the weakest pace since late 2022, reported Reuters. Weak consumer spending, sluggish wages and continued problems in the property sector have weighed on domestic demand despite stronger exports and industrial production.
Economists expect Chinese policymakers to keep supporting employment and consumption as they try to stabilise growth during the second half of the year, according to Reuters report. A healthier labour market could help boost household confidence and spending, both of which remain key priorities for Beijing.
