Record youth unemployment stokes economic worries in China
China’s record youth unemployment, at a high of 20.4% for 16- to 24-year-olds in April, has left college graduates taking lower-paying jobs or positions below their skill levels. Urban youth unemployment figures from the National Bureau of Statistics indicate 6 million of the 96 million 16- to 24-year-olds in China’s labour force are currently unemployed, a rise of an estimated 3 million since the pandemic. Youth underemployment is estimated to affect a further quarter of college graduates. A 15-point plan from China’s State Council aims to assist young job-seekers, but experts warn of a structural mismatch between unemployed graduates’ expectations and education institutions’ knowledge of the labour market.
FAQs:
What is China’s current youth unemployment rate?
Urban youth unemployment for 16- to 24-year-olds hit a record of 20.4% in April, with six million out of 96 million in China’s labour market being unemployed.
What impact could youth unemployment have on China’s economy?
Experts warn that the impact of youth unemployment and underemployment could “potentially have very negative ramifications for the economy.”
What is China’s State Council doing to aid young job-seekers?
The State Council announced a 15-point plan in April aimed at supporting young job-seekers by matching jobs more optimally, offering support for skills training, and traineeships, expanding hiring at state-owned enterprises, and backing the entrepreneurial aspirations of college graduates and migrant workers.
What is the cause of youth unemployment in China?
A structural mismatch between unemployed graduates’ expectations and education institutions’ knowledge of the labour market is one of several possible factors. Factors include a struggling services sector, insufficient credit access for smaller and medium-sized companies, and the Chinese economy’s slow transition from a labour-intensive industry to a technological, service-oriented, knowledge economy.
China’s Economic Concerns Mount as Youth Unemployment Rates Reach Record High
China’s youth face the grim reality of limited economic opportunities as record-high youth unemployment plagues the world’s second largest economy. College graduates are caught in a perfect storm, with many resorting to low-paying or under-skilled jobs due to the misalignment between the supply of skilled workers and demand from industries. Official data shows that China’s youth unemployment rate hits a record high at 20.4% in April, with estimates suggesting that another quarter of college graduates are underemployed. Underemployment occurs when people settle for jobs that are below their skill level or part-time work instead of full-time jobs that match their skills. This phenomenon is a concern for policymakers and Chinese youths, as diminished job prospects could lead to dissatisfaction and affect the social contract between the Communist Party and the people. The Chinese central government has taken steps to mitigate this issue by launching a 15-point plan that provides support for skills training, traineeships, and entrepreneurship among college graduates and migrant workers. However, the fundamental mismatch between labor market demands and education institutions, as well as changing expectations from young people, presents a challenge for tackling this problem.