Official data showed unemployment rate among those aged 16 to 24 in the world’s second-largest economy was 14.9% in December 2023, excluding those still in school.
Despite the fact that joblessness among China’s youngsters ought to disseminate beginning one year from now, the impacts of high youth joblessness will stay long from that point onward, the consultancy added.
China’s youth unemployment will likely stay elevated this year due to a lingering mismatch, according to the Economist Intelligence Unit. It explained the sheer number of new graduates, who often target hot manufacturing sectors, far outstrips jobs — the majority of which are still focused in the lower-skilled sectors.
“With the upturn in China’s labor market as a whole, the biggest improvements are concentrated in middle-aged groups and migrant workers,” EIU analysts said in their China 2024 outlook report released recently.
“In contrast, the post‑Covid recovery has not eased the slack in the youth labor market. The surge in fresh graduates has not been met by a commensurate increase in new job opportunities. New hires are still being offered lower wages amid the labor oversupply,” they added, saying automation poses a further threat to the number of jobs in China.
Barring students, the joblessness rate for the youth aged 16 to 24 on the world’s second-biggest economy remained at 14.9% in December, as per month to month Data from China’s Bureau of Statistics released last Wednesday. This compares to China’s more extensive metropolitan joblessness pace of 5.1% for that very month.
China’s childhood joblessness rate had recently move to record highs surpassing 20% before the country’s National Bureau of Statistics briefly suspended the arrival of the group’s joblessness rate the previous summer, refering to the need to rethink estimation strategies.
EIU called attention to, notwithstanding, increased high youth joblessness will make leftover effects. EIU noted that these issues would also have financial repercussions for Beijing in the form of an increased need for welfare, including lower lifetime earnings and purchasing power as well as delayed marriages and childbearing.
This will probably intensify the economic effect from China’s segment decline, which enrolled a second consecutive yearly populace decrease a year ago. China’s population shrunk by more than 2 million people to 1.41 billion in 2023 from the prior year. The population had declined by 850,000 people in 2022 from 2021.
China’s economy grew 5.2% last year, bogged down by Beijing’s deleveraging of its once-bloated real estate sector. Some of the country’s largest property developers face serious debt problems.
China’s real estate troubles are closely intertwined with local government finances, since they have historically relied on land sales to developers for a significant portion of their revenue. This has intensified financial risks and roiled consumer confidence, as consumer prices teeter on the verge of deflation.
Beijing has been trying to bolster growth in a targeted manner, focusing on high quality growth in sectors that yield greater economic value.
“Under China’s industry-driven strategy, more top talents are migrating towards China’s emerging manufacturing sectors, such as electric vehicles and integrated circuits, a trend that will help to improve productivity in those industries,” EIU said.
The bulk of jobs created are low- or medium- skilled ones that have little appeal to university graduates, many of whom now possess even higher-level degrees following an expansion of postgraduate enrolment during the pandemic.
Subsequently, China has attempted to ingest the workforce who left tutoring and property, two areas which were battered by government crackdowns.
Thanks to: CNBC news