China's youth unemployment problem reaches 18.8%, the worst in 2024 so far

China’s youth unemployment climbed to 18.8 per cent in August, the highest level this year, as the country continues to grapple with a slowing economy, according to official data.

The unemployment rate for those aged 16 to 24 who are not in school rose from 17.1 per cent in July, the National Bureau of Statistics (NBS) reported on Friday (September 20). The figure had previously peaked at 21.3 per cent in June 2023 before authorities revised the method of calculation, excluding students from the data.

The surge in youth joblessness comes as China faces significant economic headwinds. Nearly 12 million university graduates entered an already saturated job market in June, exacerbating the competition for employment opportunities and contributing to the rise in unemployment.

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In May, President Xi Jinping stressed on the importance of addressing youth unemployment, labelling it as a “top priority.”

Meanwhile, unemployment among those aged 25 to 29 also ticked up, reaching 6.9 per cent in August from 6.5 per cent in July, the NBS said.

The latest jobless figures coincide with disappointing data on retail sales and industrial production growth for August, highlighting broader challenges in the Chinese economy.

“Adverse effects from current changes in the external environment are increasing, domestic demand remains insufficient, and the economy is still facing numerous difficulties and challenges in its ongoing recovery,” the NBS said in a prior statement.

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Wider economic struggles

China’s economic woes are compounded by a property sector weighed down by massive debt and ongoing trade tensions with the West, adding to the uncertainty.

Despite the easing of strict COVID-19 restrictions more than a year ago, China’s post-pandemic recovery has been slower than expected. Industrial production growth slowed in July, further dampening hopes of a swift economic rebound.

The combination of rising unemployment and weak economic indicators is eroding investor confidence, posing new challenges for Chinese policymakers.

With inputs from agencies