The youth unemployment rate in China fell to 17.6 percent in September from 18.8 percent in August, official data from the National Bureau of Statistics recently revealed, offering some relief after youth unemployment hit record highs for two straight months.
China’s youth unemployment rate counts 16-to-24-year olds, excluding students.
Unemployment hits record levels in August
Unemployment among young people and college graduates rose from 13.2 percent in June to 17.1 percent in July, with around 12 million students entering the labor market. In August, the figure rose to its highest level since the bureau changed the methodology to not include students in December 2023.
The youth unemployment rate in China hit a record high of 21.3 percent in June 2023, prompting the country to stop publication of the benchmark until the change in methodology was made.
Officials on Friday expressed confidence the world’s second-largest economy would continue the stabilization and recovery trend that occurred in September at a news conference after the release of a growth figure for the third quarter. China’s economy grew 4.6 percent in July-September, official data showed, slightly below the 4.7 percent pace in the second quarter.
On a quarterly basis, the economy expanded 0.9 percent in the third quarter, compared with a revised 0.5 percent growth in April-June, and below the forecast of 1 percent.
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Overall unemployment rate declines to 5.1 percent
However, a separate official survey on factory owner confidence for September revealed that firms continued to hold off on hiring last month. Producers last reported improving employment conditions in February 2023.
Last week, China reported that the overall urban unemployment rate stood at 5.1 percent in September, improving slightly from 5.3 percent in August. Meanwhile, the unemployment rate for 25-to-29-year-olds last month was 6.7 percent, also excluding college students and 3.9 percent for people between 30 and 59 years old.
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