China’s youth unemployment rate falls after climbing for two straight months

THE jobless rate for 16 to 24 year olds in China, excluding students, fell to 17.6 per cent in September from 18.8 per cent a month prior, official data showed on Tuesday (Oct 22), offering officials relief after youth unemployment hit fresh highs for two straight months.

Unemployment among young people and college graduates jumped from 13.2 per cent in June to 17.1 per cent in July, as some 12 million students entered the labour market, before the August figure rose to its highest level since the National Bureau of Statistics decided to change the methodology to not include students in December 2023.

Youth unemployment hit a record high of 21.3 per cent in June last year, prompting China to halt publication of the closely watched benchmark until that change was made.

Officials on Friday expressed confidence the world’s No 2 economy would “continue the stabilisation and recovery trend that occurred in September”, at a news conference after the release of a disappointing growth figure for the third quarter.

But a separate official survey on factory owners’ confidence for September showed that firms continued to hold off on hiring last month. Producers last reported improving employment conditions in February 2023.

The rate last month for 25 to 29 year olds was 6.7 per cent, and also excluded college students, and 3.9 per cent for people between 30 and 59 years of age.