Youth Unemployment in China Rises to 17.1% in July, Highest Level This Year

Youth unemployment in China climbed to 17.1 percent in July, marking the highest rate recorded this year, according to official figures released by the National Bureau of Statistics (NBS). The unemployment rate among 16- to 24-year-olds, which no longer includes students following a recent change in the calculation methodology, was 13.2 percent in June.

The rise in youth unemployment is part of a broader set of challenges facing the world’s second-largest economy, including a heavily indebted property sector and growing trade tensions with the West. The NBS data shows that the youth unemployment rate had previously peaked at 21.3 percent in June last year. Following this peak, authorities suspended the publication of these figures and later revised the methodology to exclude students, which has led to ongoing debate about the transparency and accuracy of the data.

For those aged 25 to 29, the unemployment rate stood at 6.5 percent in July, up slightly from 6.4 percent in June. Across the entire workforce, the unemployment rate was 5.2 percent last month. However, these figures provide only a partial view of China’s employment landscape, as they focus solely on urban areas, leaving out rural regions.

In response to the rising joblessness among the youth, President Xi Jinping emphasized in May that addressing youth unemployment must be treated as a “top priority.” The situation has been exacerbated by the graduation of 11.8 million students from Chinese universities in June, adding further pressure to an already strained job market.

Adding to the economic concerns, China released more disappointing economic data on Thursday, including figures that showed weakened industrial production, despite recent government efforts aimed at stimulating growth. These challenges underscore the difficulties faced by China’s economy as it navigates through a period of significant economic headwinds.