Worst of the Worst... China Ultimately Halts Disclosure of Youth Unemployment Rate

Youth Unemployment Rate Hits Record High for Three Consecutive Months
"Pressure on Labor Market... Significant Burden on Chinese Economy"

China has abruptly stopped releasing data related to youth unemployment rates. This is interpreted as an indication of how serious the youth unemployment problem in China, which has been recording consecutive all-time highs, has become.

The National Bureau of Statistics of China did not include the youth unemployment rate indicator in the economic data released on the 15th. Until now, China has disclosed the unemployment rate for youths aged 16 to 24 along with retail sales, industrial production, fixed asset investment, and urban unemployment rates.

Fu Linghui, spokesperson for the National Bureau of Statistics, stated at a press conference, "From August this year, we will stop disclosing the youth unemployment rate," adding, "This is because it is necessary to optimize labor statistics further due to economic and social development."

He added, "Research will be conducted on whether students seeking jobs before graduation should be included in labor statistics."

The Chinese government considers the previous inclusion of students in the youth category as an inappropriate method of aggregation. In 2022, there were 96 million youths in China, of whom 65 million were students. There are differing opinions across various sectors on whether students who engage in job-seeking activities before graduation should be included in labor force survey statistics.

The youth unemployment rate for those aged 16 to 24 in China has exceeded 20% for three consecutive months recently, repeatedly setting record highs. In June, it reached 21.3%. This contrasts with the authorities' claim that "the employment situation is generally stable."

Young People in China
Photo by EPA Yonhap News

Moreover, concerns are rising that the youth unemployment rate in July and August will soar further as a record 11.58 million university graduates join the job market this summer.

Additionally, there are claims that the actual number of unemployed youths is much higher than official statistics indicate. Until now, Chinese authorities have classified those who are not willing to work due to studying or preparing for employment, or those engaged in household duties and not entering the labor market, as "non-labor force." In other words, the logic is that since they have no intention to work, they cannot be counted as unemployed.

However, last month, a research team led by Professor Zhang Dandan of Peking University announced, "Our analysis shows that the number of youths who depend on their parents, including the 'Kangaroo tribe' and 'Tangping (??平) tribe,' reaches 16 million."

Tangping refers to a state of physical and mental exhaustion leading to a lack of motivation to continue striving. Professor Zhang stated, "If these individuals are included as unemployed, the actual youth unemployment rate in China in March would be 46.5%." This figure far exceeds the 19.6% announced by the authorities.

Professor Zhang pointed out, "Youths who have given up job hunting due to severe employment difficulties are willing to return to the labor market whenever an opportunity arises. If they are included in the labor force, nearly half of China's youths would be unemployed."

Amid this worst employment crisis, practices such as trading fake internship certificates and nepotistic hiring are rampant among Chinese youths. Regardless of ideology, the number of young people seeking to become Communist Party members has also increased, as party membership offers advantages in civil service appointments and employment in state-owned enterprises.

Bloomberg reported, "Due to the impact of COVID-19 and the slowdown in the real estate market, pressure on the labor market has increased, and China's youth unemployment rate has remained high for over a year," adding, "As economic recovery slows, employers are more reluctant to hire, placing a significant burden on the Chinese economy."

This content was produced with the assistance of AI translation services.