China's National Bureau of Statistics has released youth unemployment data for the first time since June 2023, showcasing a new method that appears to reflect an improvement in the situation. The country announced a 14.9% jobless rate for individuals aged between 16 and 24 in December, excluding students from the calculation. This change in methodology comes after a surge in youth unemployment caused by an economic slowdown and regulatory crackdowns on sectors such as technology and education, which typically employed a younger workforce.
Previously, the youth unemployment rate in China included students who worked at least one hour a week as employed and those who desired jobs but couldn't find them as unemployed. However, the statistics bureau deemed it necessary to modify the calculation to provide better insight into the employment and unemployment situation of young people entering society.
The exclusion of school students from the jobless rate will enable authorities to offer more precise employment services and create targeted employment policies to cater to the needs of the younger population. With over 60% of the 16 to 24-year-old age group consisting of school students, this change will help provide a clearer picture of the employment landscape.
In addition to publishing data for the 16 to 24 age group, the bureau also released the unemployment rate for individuals aged 25 to 29 for the first time. This rate, like the youth unemployment rate, excludes students from the calculation. In December, the jobless rate for this age group stood at 6.1%, reflecting the employment situation of university graduates.
While China's overall urban unemployment rate in December increased slightly to 5.1% from 5.0% in the previous three months, the government is under pressure to boost job creation and bolster employment. Official estimates indicate that the number of university graduates is expected to reach a record high of 11.79 million this year.
As China continues to recover from the economic impact of the pandemic, it will be crucial to focus on creating job opportunities for the younger population, ensuring they have a smooth transition into the workforce. The government's efforts to provide precise employment services and formulate effective employment policies will be vital in addressing the challenges faced by the youth in finding suitable employment.
