China’s youth unemployment rate climbed to 17.1% in July
2024.08.16 05:47
By Joe Cash
BEIJING (Reuters) – The jobless rate for 16- to 24-year olds in China, excluding students, rose to 17.1% in July from 13.2% in the prior month, the country’s statistics bureau said on Friday, as employers in the lackluster $19 trillion economy held off on hiring .
A string of dismal indicators for July has analysts betting on the world’s No.2 economy entering a period of prolonged sluggishness going into the second half of the year and beyond, as it grapples with one crisis after another, from a trade war to a prolonged property crisis and cautious consumer confidence.
Around 12 million students graduated this summer, but with even roles in remote rural areas attracting young Chinese with diplomas from top universities, aspiring professionals face the toughest job market in years.
Youth unemployment hit a record high of 21.3% in June last year, prompting China to halt publication of the closely watched benchmark, saying students still enrolled should be excluded.
The July figure was the highest in records since December 2023, when officials changed the methodology.
The rate last month for 25- to 29-year olds was 6.5%, and also excluded college students, and 3.9% for people between 30 and 59 years of age.
An official factory managers’ survey for July suggested the production powerhouse’s manufacturing sector remained reluctant to take on new staff, with its employment gauge last expanding in February 2023 and pointing to a somnolent domestic economy.
In contrast, employment in the services sector rose at its fastest pace in 11 months in July, a Caixin/S&P Global services purchasing managers’ index survey showed, offering 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.
