Facing Unemployment Records: China Opts to Withhold Youth Data

Chinese authorities stated on Tuesday that they would temporarily suspend publishing the youth unemployment rate, which has recently risen to record highs, since the methodology used to calculate it has to be improved.

Young unemployment is only one of the issues China, the second-largest economy in the world after the United States, is confronting as it makes a slower-than-anticipated recovery following three years of economic isolation.

This year, the rate of urban unemployment among those between the ages of 16 and 24 has increased significantly from month to month, reaching a record high of 21.3% in June, which is four times the national unemployment rate.

In China, there is intense competition for jobs among young people as universities produce more graduates each year than there are jobs available that match their qualifications.

They have also been hindered by regulatory crackdowns on industries like education, real estate, and technology where recent graduates frequently find employment.

According to a poll by an education research organization, approximately 47% of graduates in China’s main cities returned home within six months of graduation last year, up from 43% in 2018.

This is according to a story published last week by the state-run Jiemian News, which cited the survey.

Youth unemployment rates comparable to those in China have been recorded by nations like Sweden and Italy.

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Unemployment Rates, Deflation, and Policy Moves

Yet, if it includes people who are not enrolled in school or actively looking for job, China’s genuine percentage could be significantly higher—up to 46.5%—as estimated by a Chinese professor in a reputable financial magazine article published last month that was later edited, Caixin.

According to Fu, there will be 96 million people in China between the ages of 16 and 24 in 2022, 65 million of whom would be students. To decide which age range to use and if students looking for work before graduation should be included in the jobless rate, he said more research was required.

Additional July figures made public on Tuesday further highlighted China’s economic challenges. Less growth than anticipated was seen in retail sales, industrial production, and fixed asset investment. The urban unemployment rate rose from 5.2% in June to 5.3% in July.

In an effort to stimulate the economy, the Chinese central bank unexpectedly reduced key rates for the second time in three months earlier on Tuesday.

The National Bureau of Statistics published a considerably steeper than anticipated decline in July exports and imports last week. Also, it stated that consumer prices fell in July for the first time in two years, causing deflationary concerns.

On Tuesday, Fu refuted claims that China was experiencing a deflation problem, referring to pricing fluctuations as “normal.”

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Source: MSN