Title: Rising Youth Unemployment in China Sparks Concerns as Graduates Struggle to Find Jobs
Date: June 24, 2023
Reported by: Terri Wu, English Epoch Times reporter
China’s youth unemployment crisis has deepened, with college graduates from the classes of 2023 and 2022 facing significant challenges in finding employment. As the graduation date approaches, many students are growing increasingly anxious about their future prospects.
A recent webinar, attended by around 800 unemployed graduates, highlighted the struggles faced by these young job seekers. Many participants expressed their frustrations and shared their experiences of living with parents who blamed them for their inability to secure a job. The session moderator reassured attendees that the job market’s difficulties were not their fault and encouraged them to share the webinar with their parents to alleviate anxiety.
The official youth unemployment rate in China stood at 20.8% in May, significantly higher than the overall unemployment rate of 5.2%. This rate indicates that one in five job seekers aged 16 to 24 in urban areas is currently unemployed. Moreover, this figure does not account for the two-thirds of China’s urban youth population who are not actively seeking employment.
To address this growing crisis, Chinese authorities announced a series of policy incentives set to take effect by the end of 2023. These measures include expanded hiring by state-owned enterprise subsidiaries, increased hiring by financial institutions, the provision of more business loans, enhanced vocational training, and the creation of at least one million internship positions. However, despite these efforts, youth unemployment is expected to rise in the coming months, according to a Goldman Sachs estimate.
Experts argue that China’s high youth unemployment is not solely a result of the pandemic but rather a consequence of long-standing economic issues. Christopher Balding, an expert on the Chinese economy, explains that the country’s rapid growth and heavily indebted economy have contributed to the current situation. He believes that the pandemic may have exacerbated the problem, but it would have existed regardless.
China’s supply-driven growth model, which focused on infrastructure construction without considering demand, has led to a significant accumulation of debt. The country’s core debt is nearly three times its GDP, compared to 2.5 times in the US and emerging markets. This debt burden, coupled with limited consumer empowerment and restrictive policies, hinders the potential for demand-driven growth.
The official youth unemployment rate may not accurately reflect the true extent of the problem. A professor from a private university in Guangzhou claims that the actual unemployment rate could be as high as 80%, far exceeding the official figure. She explains that students often resort to faking employment to obtain their graduation certificates, as failure to provide employment documents can result in withheld diplomas.
The rising youth unemployment rate in China has raised concerns about the future well-being of young people. Experts warn that it could lead to disillusionment with the Chinese Communist Party (CCP) and its leader, Xi Jinping. Some young individuals have already embraced countercultural movements, such as the “Lie Flat” movement, which rejects the pursuit of material wealth and protests against poor working conditions.
As the graduation date approaches, the challenges faced by Chinese college graduates in finding employment continue to mount. The government’s policy incentives aim to alleviate the crisis, but experts argue that deeper structural reforms are necessary to address the root causes of youth unemployment and empower young people to shape their own futures.struggles to find job opportunities, the situation in China has reached a critical point. With less than a month to go before graduation, many college students in China are still struggling to find employment.
According to a report by The Epoch Times, many of the 800 attendees at a recent webinar were unemployed graduates from the classes of 2023 and 2022. The attendees were eagerly logging in and leaving messages, requesting free resume templates. The session moderator shared that many of the trainees he works with live with their parents, who blame them for not trying hard enough to find a job.
The host of the webinar addressed the attendees’ anxiety, stating that finding a job is very difficult this year and that it is not their fault. The moderator encouraged attendees to forward the webinar to their parents to help reduce their anxiety.
The official youth unemployment rate in China was 20.8% in May and 20.4% in April, which is about four times the overall unemployment rate of 5.2%. This rate means that one in five job seekers aged 16 to 24 in urban areas is out of work. Additionally, this proportion does not include those who are not actively looking for work, accounting for two-thirds of China’s 100 million urban youth population.
To address this growing crisis, Chinese authorities announced a series of policy incentives in April, including expanded hiring by state-owned enterprise subsidiaries, increased hiring by financial institutions, more business loans, additional vocational training, and the creation of at least one million internship positions. However, despite these efforts, youth unemployment is expected to rise in the coming months.
The situation is further exacerbated by macroeconomic issues, including real estate industry problems, debt issues, and US-China tensions. Goldman Sachs recently lowered China’s 2023 gross domestic product (GDP) growth forecast from 6% to 5.4% due to these issues. Other major banks, including UBS, Bank of America, and JPMorgan, have also lowered their GDP growth forecasts for China.
Experts believe that China’s high youth unemployment is not solely due to the pandemic but is a result of years of rapid growth and a heavily indebted economy. Christopher Balding, an expert on the Chinese economy, stated that the problem existed before the pandemic and had been brewing for 15 years. He explained that China embarked on a path of artificially high growth rates after the global financial crisis, increasing infrastructure construction regardless of demand and accumulating massive amounts of debt.
China’s household debt-to-GDP ratio has steadily risen, reaching 63.3% in March 2023, compared to 65.7% in the US. Experts argue that China’s supply-driven growth has hit a bottleneck, and stimulating demand is unrealistic without removing certain policies imposed by the Chinese Communist Party.
The official youth unemployment rate may not reflect the full picture, as job seekers aged 16 to 24 include middle and high school graduates from rural areas seeking urban employment, as well as urban students with undergraduate degrees. A professor at a private university in Guangzhou revealed that the actual unemployment rate could be as high as 80%, much higher than the official figure of 20%.
The high youth unemployment rate has led to increased anxiety, disappointment, and doubt about the future among young people in China. It is seen as a sign of the transition from youth to adulthood and can affect subsequent marriages and parenthood. A Stanford study showed that college graduates who graduated during a recession earned less over 10 to 15 years and were less likely to marry and have children.
The situation has also led to disillusionment with the Chinese Communist Party (CCP) and its leader, Xi Jinping. Some young people in China have embraced a countercultural movement called “Lie Flat,” which protests against job opportunities and poor working conditions by rejecting the pursuit of material wealth.
The imbalance between graduate supply and demand is a significant factor contributing to the high youth unemployment rate in China. While youth unemployment tends to be higher during economic downturns, the current situation in China has reached a critical point, with many college graduates struggling to find employment. The Chinese government has implemented policy incentives, but experts believe that addressing the issue requires removing certain policies imposed by the CCP and empowering consumers.China’s Youth Struggle with High Unemployment Rates as Graduation Approaches
As graduation approaches for college students in China, many are facing the harsh reality of a difficult job market. With less than a month to go before graduation, numerous students are still struggling to find employment opportunities. This issue was highlighted during a recent webinar attended by around 800 individuals, mostly unemployed graduates from the classes of 2023 and 2022.
During the webinar, attendees expressed their frustrations and anxieties about their job prospects. Many shared their experiences of living with parents who blamed them for not trying hard enough to secure a job. The session moderator reassured the attendees that the job market’s difficulties were not their fault and encouraged them to share the webinar with their parents to help alleviate their anxiety.
The official youth unemployment rate in China was reported to be 20.8% in May and 20.4% in April, which is four times higher than the overall unemployment rate of 5.2%. This rate means that one in five job seekers aged 16 to 24 in urban areas is currently unemployed. Additionally, this figure does not include those who are not actively seeking employment, which accounts for two-thirds of China’s urban youth population.
In response to the growing crisis, Chinese authorities announced a series of policy incentives set to take effect by the end of 2023. These measures include expanded hiring by state-owned enterprise subsidiaries, increased hiring by financial institutions, the provision of more business loans, enhanced vocational training, and the creation of at least one million internship positions. However, despite these efforts, youth unemployment is expected to continue rising in the coming months.
Experts believe that the high youth unemployment in China is not solely due to the pandemic but rather a result of years of rapid growth and a heavily indebted economy. Christopher Balding, an expert on the Chinese economy, stated that the problem existed before the pandemic and had been brewing for 15 years. He explained that China’s focus on artificially high growth rates and excessive infrastructure construction, regardless of demand, has contributed to the current situation.
China’s debt levels are also a cause for concern. The country’s core debt to the non-financial sector is almost three times its GDP, compared to 2.5 times in the US and emerging markets. This debt accumulation, combined with supply-driven growth, has created a bottleneck that cannot be easily solved by stimulating demand.
The Chinese regime’s traditional approach of investing in infrastructure to boost GDP growth may no longer be effective. Experts argue that China has already built most of the necessary infrastructure, and further construction projects are merely creating jobs without significant economic advantages.
Furthermore, the official youth unemployment rate may not accurately reflect the true extent of the problem. A professor at a private university in Guangzhou revealed that the actual unemployment rate among graduates could be as high as 80%, significantly higher than the official figure of 20%. The professor explained that students often resort to faking employment to obtain their graduation certificates, as failure to provide employment documents can result in the withholding of diplomas.
As China grapples with high youth unemployment rates, experts emphasize the need for policy changes that empower consumers and allow individuals to make independent choices. They argue that the removal of certain restrictive policies imposed by the Chinese Communist Party is necessary to address the underlying issues contributing to the unemployment crisis.
In the face of these challenges, China’s economic growth forecast has been downgraded by Goldman Sachs and other major banks. The country’s GDP growth forecast for 2023 has been lowered from 6% to 5.4% due to macroeconomic issues, real estate industry problems, debt concerns, and US-China tensions. It remains to be seen how China will navigate these challenges and address the pressing issue of youth unemployment.
What measures can be taken to reduce the country’s core debt and promote sustainable economic growth without further burdening the consumers and stifling demand
Significant concern, with the country’s core debt almost three times its GDP. This debt burden, along with limited consumer empowerment and restrictive policies, hinders the potential for demand-driven growth.
The official youth unemployment rate may not accurately reflect the true extent of the
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