China's youth jobless rate hits a record high of 19.9 pc

Beijing [China], August 16 : Youth jobless rate in China has hit a record high of 19.9 percent, media reports said citing the country's National Bureau of Statistics (NBS).
Chinese local media portal Global Times while citing the Ministry of Education noted that the number of college graduates in 2022 is expected to reach 10.76 million, exceeding 10 million for the first time, which is 1.67 million more than 2021.
The surveyed urban unemployment in July was 5.4 percent, down 0.1 percentage points compared with the previous month, Fu Linghui, a spokesperson from the NBS, said during a press conference.
Meanwhile, Urban unemployment stood at 6.1 percent in April, followed by 5.9 percent in May, and 5.5 percent in June.
The youth jobless rate climbed to a record of 19.9 percent in July, compared with 19.3 percent in June and 18.4 percent in May. Youth employment tracks those aged between 16 to 24 years old. July is the graduation season, and a large number of graduates entered the labor market for the first time, pushing up the unemployment rate among youngsters, Fu said.
Moreover, businesses have slowed their pace of recruitment due to the impact of the COVID epidemic. In particular, the slow recovery of the tertiary industry has also hindered the employment of young people.
Also many younger people look for more stable jobs, which has caused a gap between job-hunting and demand, Fu said. The domestic job market is facing mounting pressure due to COVID-19 while Chinese authorities continues to implement policies in attempt to ease the situation, as per the media portal.
The most educated generation in China's history is facing a setback as about 15 million young people are estimated to be jobless, and many are lowering their ambitions.
According to the latest figures from the National Bureau of Statistics in July, the average surveyed unemployment rate in urban areas is 5.8 per cent in the second quarter of this year. But the drop doesn't stop there, it kept falling to 5.9 per cent and 5.5 per cent in May and June respectively. And in April, it touched 6.1 per cent.
Precisely in June, the population aged between 16-24 years old are still facing difficulties landing a job as the unemployment rate went up to 19.3 per cent. More young people taking roles in government may leave fewer jumping into new sectors and would also dump China's aim for an innovative and technologically advanced economy, China Daily reported.
Earlier, the top Chinese talent used to aim for the Fortune Global 500 companies, large internet platforms, consulting agencies or law firms in cities such as Beijing and Shanghai. But this year, graduates have been intimidated by a torrent of news on social media about mass lay-offs at tech, entertainment, private tutoring and real estate companies as the Chinese economy is battered by stringent coronavirus control measures and regulatory crackdowns, according to Financial Post, a US-based publication.
The young population are losing the faith in private companies and is willing to accept lower pay in the state sector.
According to the publication, if the trend continues, growth in the Chinese economy stands to suffer. The regulatory filings show that China's top five listed education companies reduced their staffing by 1,35,000 in the last year after the crackdown.
Moreover, a number of colleges and vocational school graduates that would be entering the job market, observed that there is a mismatch between available roles and jobseekers' expectations.
Under the covid outbreak, various private companies laid off their employees and this is the reason that 39 per cent of graduates listed state-owned companies as their top choice of employer last year, according to the publication citing recruitment company 51job Inc.
To meet its employment goals, economists say China needs GDP to increase between 3 per cent and 5 per cent this year. However, the country is predicted to achieve a growth rate closer to 4per cent--with the outlook highly uncertain due to the prospect of more lockdowns to contain the spread of the coronavirus.