(Bloomberg) -- China’s youth unemployment rate rose for the first time in five months as an influx of graduates entered the labor market at a time when the economy is struggling to find a firm footing.
Joblessness among people aged 16 to 24 climbed to 17.1% in July, according to data released Friday by the National Bureau of Statistics. That’s a significant increase from 13.2% in June and is more than three times the overall unemployment rate.
The job numbers come as other economic indicators point to a sluggish recovery, with businesses turning increasingly pessimistic and consumers still wary of spending. The statistics bureau has attributed the rise in unemployment to the graduation season, which saw an estimated 11.8 million graduates enter the job market this year, up 2% from last year.
Beijing stopped publishing data on youth unemployment last summer after the number hit a record high of 21.3%. Officials resumed the release in January under a new methodology that excludes students, saying it more accurately reflects the size of the workforce.
The youth jobless rate overall has climbed in recent years as the job market has deteriorated and employers pulled back on hiring. That’s exacerbated a structural mismatch, as graduates primarily seek white-collar jobs while factories struggle to hire.
A flurry of Chinese universities are extending the duration of their postgraduate programs, helping to ease pressure on the labor market. President Xi Jinping has pledged to prioritize youth employment and direct more resources to job creation.
--With assistance from James Mayger.
©2024 Bloomberg L.P.
