Fact of the Week: China’s Youth Unemployment Rate Reaches Its Highest Level on Record in April
Source: Claire Fu, “1 in 5 Young Chinese Is Jobless, and Millions More Are About to Graduate,” New York Times, May 19, 2023.
Commentary: 20.4 percent of China’s population aged 16 to 24 years old (not including full-time students) were unemployed in April, which is the highest rate since the Chinese government started tracking the statistic in 2018. Youth unemployment skyrocketed as China locked down during the COVID-19 pandemic, and additional factors such as the Chinese Communist Party’s political crackdown on fast-growing technology companies have further exacerbated this development, even as China’s overall unemployment rate has declined each of the last two months. According to Nie Riming, a researcher at the Shanghai Institute of Finance and Law, young people in China graduating with university degrees are primarily seeking jobs in technology, education, and medicine. However, these are the industries experiencing some of the lowest levels of job growth in China as it reopens its economy, while lower-skilled industries like tourism and transportation are seeing the highest levels of growth.