Youth unemployment (16-24) in China hits record 18.4%. Unemployment is significantly more prevalent in this demographic compared to the country as a whole, where unemployment is 5.9%. Youth unemployment tends to be higher in most countries, with a youth unemployment rate of 7.8% in the US and 13.9% in the European Union. While our models show that China is on the rise, labor pressure will slow the trajectory.
Bank of America believes Youth unemployment in China will rise to 23% in the coming months. They also believe that unemployment in the country as a whole will continue to rise. Young people flock to the cities in search of work, and there are simply not enough jobs to meet the demand. College entry requirements surpass most national standards, and many teens have taken to social media to complain about the tough selection process.
China is currently encouraging new graduates to seek employment in less attractive rural areas as more than 10 million students are expected to graduate in the coming weeks. The government also offers benefits to those who choose to work in the country.
“For college graduates who start a business in urban and rural utilities, policies such as preferential taxes and fees, one-time grants for entrepreneurship and guaranteed loans for entrepreneurship should be implemented in accordance with the regulations,” the Ministry of Education said. , Finance, Civil Affairs, Human Resources and Social Security. Businesses in these areas that agree to hire new graduates will also receive government benefits.
The problem began with a pandemic and self-isolation. The COVID zero policy rule has slowed China’s progress towards becoming the financial capital of the world. Small businesses and businesses in rural areas have been particularly affected by the lockdown policy. In addition, tech hiring has declined since President Xi introduced new regulations in the sector. The main jobs offered in rural areas include hospitality, real estate and healthcare. Remote work options can empower youth to live and contribute to life outside of urban areas. China must find a way to employ these new graduates with no previous experience before things get worse.