Chuyển tới nội dung
Trang chủ » China’s Youth Unemployment Escalated Due to Job Mismatch, According to Goldman Sachs

China’s Youth Unemployment Escalated Due to Job Mismatch, According to Goldman Sachs

Goldman Sachs says jobs mismatch drove up China's youth unemployment

Goldman Sachs says jobs mismatch drove up China’s youth unemployment

Goldman Sachs analysts have released a report which states that China’s record unemployment rates among young people are partly due to a mismatch between their majors and the available jobs. Graduates from vocational schools studying education and sports rose by 20% in 2021 compared to 2018, however, the education industry’s demand for new hires “weakened meaningfully during the same period,” Goldman Sachs said. Additionally, record regulatory changes wiped out jobs in after-school education in 2021, while policymakers cracked down on internet tech companies and real estate developers. This resulted in a weakening of labor demand in information technology, education, and property, which are also industries that tend to hire more young workers.

According to the report, Chinese factories have faced worker shortages as young people choose to pursue other fields. Such mismatch in majors and available jobs comes as China’s overall growth has remained sluggish, even after the end of Covid controls late last year. China’s top leaders said at a regular meeting in late April the economy lacked “internal” drive. The unemployment rate for people aged 16 to 24 hit a record high of 20.4% in April and remained persistently higher than the overall jobless rate of near 5% for all people living in Chinese cities.

Chinese authorities have repeatedly said that addressing youth unemployment is a priority. Policymakers are trying to expand vocational training, while another area of opportunity is to expand the services sector, which accounts for just under half the jobs in China, far lower than the roughly 80% in Japan and the U.S.

FAQs:

Why is China facing record unemployment rates among young people?
Goldman Sachs analysts have identified a mismatch between graduates’ majors and the available jobs, as sectors such as information technology, education, and property that tend to hire young workers have weakened labor demand.

What contributed to this situation?
Record regulatory changes wiped out jobs in after-school education in 2021, while policymakers cracked down on internet tech companies and real estate developers, resulting in a weakening of labor demand in these industries.

What is the unemployment rate among young people in China?
The unemployment rate for people aged 16 to 24 hit a record high of 20.4% in April, remaining persistently higher than the overall jobless rate of near 5% for all people living in Chinese cities.

What are Chinese authorities doing to address youth unemployment?
Policymakers are trying to expand vocational training, while another area of opportunity is to expand the services sector, which accounts for just under half the jobs in China, far lower than the roughly 80% in Japan and the U.S.

Goldman Sachs says jobs mismatch drove up China's youth unemployment
Goldman Sachs says jobs mismatch drove up China’s youth unemployment

Goldman Sachs attributes youth unemployment surge in China to job mismatch

Record levels of unemployment among young people in China are partly due to a mismatch between their majors and available jobs, according to a report by analysts at Goldman Sachs. The study shows that graduates from vocational schools studying education and sports rose by 20% in 2021 compared to 2018, while the demand for new hires in the education industry weakened. Regulatory changes, especially the crackdown on internet tech companies and real estate developers, also damaged labor demand in industries that tend to hire more young workers, such as information technology, education, and property. Meanwhile, equipment manufacturing saw the largest increase in demand for workers, but little growth in new graduates. The Goldman report warned that youth unemployment could remain high in the coming years, estimating China has around three million more unemployed 16 to 24-year-olds since the pandemic started.

To address the issue, policymakers are attempting to expand vocational training and opportunities in the services sector, which accounts for just under half of all jobs in China, far less than Japan and the US, where the sector represents about 80% of all jobs. Given the concern is more about unemployment and a labor force “unable to be deployed,” the Goldman analysts note that addressing the issue and finding solutions are of utmost importance for China.

Trả lời

Email của bạn sẽ không được hiển thị công khai. Các trường bắt buộc được đánh dấu *