China warns youth unemployment to worsen after hitting record high

CHINA’S youth unemployment rate hit a record high in June, and the government has warned that the situation may get worse as new graduates start looking for work.

The jobless rate for people aged between 16 and 24 was 21.3 per cent last month, the National Bureau of Statistics (NBS) said on Monday (Jul 17). That is the highest on record in data that goes back to 2018, and marks the third month the rate has been above 20 per cent. NBS spokesman Fu Linghui said the number for July would likely be higher still.

Young people are finishing their studies and looking for jobs, adding to upward pressure on the unemployment rate, Fu told a press briefing on Monday. The government has said it expects a record of nearly 12 million students to graduate from colleges and universities this year.

Youth unemployment has been at high levels for more than a year as Covid disruptions and a property slump add to existing structural problems in the labour market. The flagging recovery in the world’s second-biggest economy is now likely making employers reluctant to hire.

The youth unemployment rate continued to climb even as the national urban unemployment rate remained at 5.2 per cent over the past three months. Fu said the central government attaches high importance to youth employment and has striven to put job creation for young people in a “more prominent position”. He added that the government is focusing its efforts on college graduates and youths starting their own businesses.

China still needs to work at stabilising the employment situation, Fu said. He also said the youth unemployment rate will likely start trending back down after August.