Job seekers and recruiters interact at a job fair in Beijing, China, 09 June 2023. File. Photo by WU HAO/ EPA
Jan. 23 (Asia Today) — China’s youth unemployment rate remained elevated in December but declined for a fourth consecutive month, offering limited signs of improvement amid continued labor market pressure on young job seekers.
The unemployment rate for urban residents aged 16 to 24, excluding students, stood at 16.5% in December, down 0.4 percentage points from November, according to data released by China’s National Bureau of Statistics. Despite the decline, the figure remains in double digits, underscoring ongoing employment challenges.
The rate had fallen to 14.5% in June last year before rebounding sharply, peaking at 18.9% in August. It then eased to 17.7% in September, 17.3% in October and 16.9% in November, marking December as the lowest level recorded since the second half of last year.
By age group, unemployment among those aged 25 to 29 declined by 0.3 percentage points to 6.9% in December, while the rate for those aged 30 to 35 edged up 0.1 percentage points to 3.9%. China’s overall urban unemployment rate came in at 5.1%, below a government forecast of 5.5%.
Wang Pingping, director of population and employment statistics at the National Bureau of Statistics, said seasonal factors contributed to earlier increases.
“Unemployment typically rises in the first quarter due to winter conditions and the Lunar New Year holiday,” Wang said, adding that hiring activity improved after the holiday period and stabilized following graduation season in the third quarter.
China’s youth unemployment drew heightened attention after the rate reached a record 21.3% in June 2023. Authorities subsequently suspended publication of the data before resuming releases later that year using a revised methodology that excludes students enrolled in secondary and higher education.
The rate remains historically high, prompting the government to expand employment support measures. Human Resources and Social Security Minister Wang Xiaoping said recently that authorities will continue policies such as employment retention subsidies, tax and fee reductions, and lower unemployment and industrial accident insurance premiums.
However, analysts say the impact of such measures may be limited by the growing number of job seekers. China’s Ministry of Education estimates this year’s university graduate cohort will reach a record 12.7 million, with graduate numbers expected to continue rising until peaking in 2035.
As competition intensifies, increasing numbers of young people are turning to the national civil service examination, known as the Guo Kao, in pursuit of stable employment. Applications totaled 3.718 million last year, surpassing graduate school applicants for the first time in a decade.
— Reported by Asia Today; translated by UPI
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