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

China’s National Bureau of Statistics on Friday released economic data that showed youth unemployment rose to 17.1 percent in July, an increase from 13.2 percent in June and the highest level recorded in 2024 so far.

Voice of America News (VOA) noted the real numbers are probably even worse. Unemployment reports in China are dodgy even by the usual standards of the Communist regime because when youth unemployment hit 21.3 percent in June 2023, the government stopped reporting jobless numbers altogether.

Six months later, the Chinese National Bureau of Statistics reluctantly began publishing unemployment figures again — but now the books were blatantly cooked to exclude students entirely. China’s unemployment reports also exclude rural areas, where joblessness is much higher — often twice the rate reported in big cities.

The latest figures showed the unemployment rate for 16 to 24-year-olds was almost triple the rate of 6.5 percent for 25 to 29-year-olds, and well over triple the 5.2 percent general unemployment rate. Another trick the Chinese Communist Party pulled after the June 2023 debacle was splitting the older cohort into two groups, 25-29 and 30-59, when they had formerly been lumped together.

“The new unemployment figures come on the heels of other disappointing economic data from Beijing, including figures showing dampened industrial production, despite recent government measures aimed at boosting growth,” VOA reported.

Real estate sales remain sluggish in China despite a raft of programs introduced in May to revive the property industry. World oil prices slipped last week on news that Chinese consumer demand is still far below pre-pandemic levels, leading to a disappointing June shopping season, normally a sales bonanza for online retailers.

The South China Morning Post (SCMP) saw Friday’s unemployment report as a gloomy harbinger of times to come as the largest group of university graduates in China’s history is about to hit the job market.

The poor July jobs report was an embarrassment for Chinese leaders, including Premier Li Qiang, who have been insisting for months that they understand the importance of young people to the job market and would make it their highest priority to keep unemployment down.

Business Standard on Friday cited manufacturing data that suggested Chinese industries are reluctant to hire more staff because they want to avoid increasing their operating expenses during a time of low consumer demand.

Job creation in the service sector appears to be much healthier than in manufacturing, which Business Standard thought might provide “some cause for optimism to officials who are anxious that a job crisis among the young could test the economic leadership of the ruling Communist Party.” Of course, the huge cohort of Chinese graduates entering the job market might be a little disappointed to find mostly service industry jobs waiting for them.

Agence France-Presse (AFP) spotted another dismaying economic indicator in China last week: demand for bank loans “contracted for the first time in nearly 20 years.”

Growth in lending stalled out in May despite Chinese banks releasing another $130 billion in loan money. Analysts said this was partly a consequence of low demand for real estate.