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China’s Unemployment Reaches New High as Country Battles with Economy

Esther

China's unemployment rate has reached a new high, reflecting the country's ongoing economic struggles. As of August 2024, the surveyed unemployment rate in urban areas stood at 5.3 percent, an increase from 5.2 percent in July.

This rise marks a major uptick from the first half of 2024, where the unemployment rate was 5.1 percent. The annual unemployment rate for 2023 was recorded at 5.2 percent.


The youth unemployment rate is particularly concerning, with figures showing a steady increase over recent years. In June 2023, youth unemployment hit 21.3 percent, up from 19.9 percent in July 2022 and 16.8 percent in July 2020.


This trend is attributed to a mismatch between the skills young people acquire through education and the demands of the job market. For instance, while the number of graduates in education and sports disciplines grew by more than 20% from 2018 to 2021, hiring demand in these sectors weakened massively.


Economists have identified several factors contributing to the high unemployment rates. These include shifts in consumer behavior, technological advancements, and global supply chain disruptions.


Additionally, the general economic downturn and the collapse of the property and housing market have led to a hiring slowdown, particularly affecting jobs suitable for new labor market entrants.


Despite efforts by the Chinese government to address these issues, such as prioritizing college graduates in military recruitment and creating internship positions in state-owned enterprises, the problem persists. The misalignment between educational outcomes and market needs remains a huge challenge that will require long-term solutions.





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