Why youth unemployment is surging in China
China's urban youth unemployment rate has risen to 21% as of May 2023, creating further challenges for the country amidst the Covid pandemic and impacting its economy.
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Posted 9/3/2023, 12:00:02 PM
cnbc.com
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China is facing a severe economic downturn, with record youth unemployment, a slumping housing market, stagnant spending, and deflation, which has led to a sense of despair and reluctance to spend among consumers and business owners, potentially fueling a dangerous cycle.
A record number of Chinese graduates are facing difficulties in finding employment, with soaring youth unemployment and a challenging job market driven by the country's post-Covid economic slowdown.
China's youth unemployment rate has reached record highs, with many young people refusing to find jobs they deem unattractive, leading to the rise of "full-time children" who rely on family support, while others are forced into unstable and low-paying jobs in the platform economy; experts warn of the long-term impact on mental health and productivity.
China's decision to suspend reporting its July youth unemployment rate has sparked controversy and speculation that the government is trying to hide unfavorable statistics, particularly as young people in China face a dire employment situation due to the economic impact of COVID-19 and other factors.
China's economy is facing challenges, with youth unemployment at a record high, mismatched skills in the job market, and the risk of falling into the middle-income trap, jeopardizing President Xi Jinping's goal of turning China into a high-income nation.
Youth unemployment remains high in most countries, with Spain having the highest rate at nearly 27.4%, indicating potential long-term impacts on young adults' careers and overall economic prospects.
China's government is concealing economic figures and data, including youth unemployment rates, as experts believe it prioritizes stability over transparency, leading to concerns and doubts about the true state of the country's economy.