Youth unemployment in China jumps to 17.1% in July

Youth unemployment in China ticked up to 17.1% in July, official figures showed, the highest level this year as the world’s second-largest economy faces mounting headwinds.

Key Takeaways

• Youth unemployment in China reached 17.1% in July 2024, marking the highest level this year and posing a significant challenge to the economy.
• The surge in joblessness among young people is compounded by a struggling property sector, trade tensions with the West, and disappointing economic indicators such as weakened industrial production and declining real estate prices.
• President Xi Jinping has emphasized addressing youth unemployment as a top priority, particularly in the face of increasing international trade barriers from the European Union and the United States.

China is battling soaring joblessness among young people, a heavily indebted property sector and intensifying trade issues with the West.

Chinese Premier Li Qiang, who is responsible for economic policy, called Friday for struggling companies to be “heard” and “their difficulties truly addressed,” according to the state news agency Xinhua.

The unemployment rate among 16- to 24-year-olds released Friday by the National Bureau of Statistics (NBS) was up markedly from June’s 13.2%.

The closely watched metric peaked at 21.3% in June of 2023, before authorities suspended publication of the figures and later changed their methodology to exclude students.