The youth unemployment rate in China hit a record high in June as the economy struggled to grow. The government warned the jobs market may get even worse in the months ahead.
The jobless rate rose to 21.3 percent in June, up from 20.8 percent in May. June was the third consecutive month of unemployment above 20 percent for people aged 16 to 24.
A spokesman for the government said the unemployment rate was likely to rise even higher next month as new graduates start looking for work. Nearly 12 million students are expected to graduate from colleges and universities this year. What’s more, many young people who took temporary internships and university research positions created during the pandemic to support employment are due to enter the job market this year.
Even at this record high, the official statistics may be understating the economic stress faced by China’s young people. Many young Chinese have taken temporary, part-time. gig or “sharing economy” jobs but they are not counted as unemployed in the official statistics. According to the government, anyone who works more than one hour during the survey week is counted as employed.
A research note from Bank of America in May pointed out that China is the only major economy that witnessed a notable increase in youth unemployment during the pandemic years. The high level of youth unemployment largely reflects still weak economic growth as well as a mismatch between the education level of workers and available jobs. The construction industry, for example, is experiencing a labor shortage despite the high level of youth unemployment because so many of the available workers are “over-qualified” for the positions available.
Prior to the onset of the pandemic, the urban youth jobless rate averaged 12 percent or less.
The overall urban unemployment rate in China has inched down since the beginning of the year. In June it was unchanged at 5.3 percent.
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