China’s youth unemployment rate rose to 17.1 percent in July, official data showed, the highest level this year, as the world’s second-largest economy faces growing headwinds.
China is suffering from rising youth unemployment, a debt-ridden real estate sector and trade problems with the West.
Chinese Premier Li Keqiang, who is in charge of economic policy, called on Friday to “listen” to struggling companies and “really address their difficulties,” according to the Chinese news agency Xinhua.
Figures from the National Bureau of Statistics revealed a significant increase in the unemployment rate among young people aged 16 to 24, compared to 13.2% in June.
That rate had peaked at 21.3% in June 2023 before authorities suspended publishing the figures and later changed their methodology, excluding students.
Nearly 12 million students finished university in China in June this year, increasing competition in an already tough job market, which may explain the sharp rise in unemployment.
Chinese President Xi Jinping declared last May that combating youth unemployment should be a “top priority.”
indicators of decline
- The unemployment rate among young people aged 25 to 29 was 6.5% in July, compared to 6.4% the previous month.
- For the workforce as a whole, the unemployment rate was 5.2%.
The new unemployment figures come on the heels of other disappointing Chinese economic data, including figures showing weak industrial production despite recent government measures to boost growth. Key highlights:
- Industrial production growth slowed in July to 5.1% from 5.3% in June, missing analysts’ expectations.
- China’s major cities saw another drop in property prices last month, indicating slowing demand.
- Demand for bank loans has fallen for the first time in nearly 20 years, according to official figures released earlier this week.
International challenges are mounting as the European Union and the United States impose increasing trade barriers to protect their markets from low-cost Chinese products and what they see as unfair competition.
