China’s youth jobless rate edged up to a fresh record in May as the economy’s recovery slowed, adding to challenges for policymakers as new graduates join the workforce.
The unemployment rate among those aged between 16 and 24 reached 20.8%, up from 20.4% in April, according to data published by the National Bureau of Statistics on Thursday. That’s four times the overall surveyed jobless rate, which was unchanged at 5.2%.
Over 33 million young people have entered the job market and more than six million of them are currently unemployed, NBS spokesman Fu Linghui told reporters in a briefing Thursday. The population of those aged 16 and 24 is about 96 million, but many are not looking for jobs because they’re still in school, he said.
Goldman Sachs Group Inc. economists estimated the number of jobless young people now is three million more than before the pandemic.
The youth jobless figures impact the “consumption story,” said Ken Wong, Asia equity portfolio specialist at Eastspring Investments, adding that “youth unemployment will probably continue to go up a bit more with fresh grads entering the workforce.”
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Youth unemployment has stayed elevated since early 2022 as Covid disruptions and a property slump added to already existing structural problems in the labor market.
Many companies are reluctant to hire in the face of a lackluster recovery, while regulatory crackdowns also resulted in heavy job losses in education, technology and property sectors. Summer is usually when the jobless rate climbs as tens of millions of graduates look for jobs: Almost 12 million college graduates will hit the job market this year, likely taking the youth unemployment rate to above 25%, according to Citigroup Inc.
High youth joblessness has weighed on consumer confidence, as households have chosen to repay their debt early to reduce risks. Authorities have rolled out measures including subsidies to help companies expand hiring.
People’s Bank of China Governor Yi Gang pledged earlier this month to promote full employment and step up financing to industries that are key to stabilizing employment, such as the services sector.
--With assistance from Jill Disis and Charlotte Yang.
(Updates with additional details.)