In a troubling sign for China’s economy, the jobless rate for 16- to 24-year-olds, excluding students, surged to 17.1% in July, up from 13.2% in June, according to the country’s statistics bureau, reported Reuters.
This sharp increase reflects a broader slowdown in the $19 trillion economy, as employers remain hesitant to hire amid a series of economic challenges.
The latest data paints a grim picture for young job seekers, with the employment landscape becoming increasingly competitive. Approximately 12 million students graduated this summer, yet even roles in remote rural areas are attracting candidates from top universities, exacerbating the difficulty of securing employment.
As per the Reuters’ report, the youth unemployment rate reached a record high of 21.3% in June of the previous year, prompting the government to halt the publication of this benchmark figure and exclude current students from the count. The July rate is the highest recorded since December 2023, when officials adjusted the methodology.
For older age groups, the unemployment rate stood at 6.5% for those aged 25-29 and 3.9% for individuals between 30 and 59 years old, excluding college students.
Economic indicators for July reveal a sluggish manufacturing sector, with factory managers’ surveys showing a reluctance to expand their workforce. The manufacturing sector’s employment gauge has not expanded since February 2023, underscoring the challenges facing China’s production powerhouse.
Conversely, the services sector provided a glimmer of hope, with employment in this area rising at its fastest pace in 11 months, according to the Caixin/S&P Global services purchasing managers’ index survey. This sector’s growth offers a potential boost to the economy, though concerns persist about the impact of youth unemployment on the broader economic stability and the Communist Party’s leadership.
As China navigates these economic headwinds, the rising youth unemployment rate continues to pose a significant challenge, casting a shadow over the nation’s economic prospects for the remainder of the year.