Record graduate influx lifts China’s youth jobless rate to 17.9% in July

China's youth unemployment rate surged to 17.9% in July as a record number of university graduates entered the job market, pushing Beijing to boost employment support. The rate for individuals aged 16 to 24, excluding students, increased by 3 percentage points to 17.9% from 14.9% in June, marking the highest level since 2023. This surge in youth unemployment is linked to a record-breaking graduation season, with an estimated 12.7 million graduates entering the labor market this summer, a 4% increase from the previous year.

The broader job market, battered by slowing economic growth, is grappling with companies cutting jobs or halting new hiring. In response, Beijing has introduced various initiatives to aid youth employment, including hiring subsidies for firms that hire graduates and urging state-owned enterprises to create more positions. Recently, the ministries of human resources and civil affairs and the Communist Party's Society Work Department issued a directive requiring local authorities to accept applications from university graduates for most community-level jobs.

Moreover, localities are encouraged to create roles for graduates and incentivize companies and social institutions to hire more graduates. Faced with intense competition, many graduates have either pursued further education or sought jobs in the public sector for their job security. Clare Wang, a 22-year-old product design graduate from Jilin Jianzhu University, is set to pursue a master's degree abroad, as most domestic employers mandate a master's degree for positions.

Similarly, Vikey Zhao, a 24-year-old UK-based e-commerce management graduate, secured a smart-retail role at a state-owned enterprise after extensive applications. Despite her efforts, many of her peers opted for postgraduate degrees due to the daunting job market. The unemployment rate for those aged 25 to 29, also excluding students, remained at 7.2% in July, up from 7.1% in June. Nationwide, China's overall urban unemployment rate rose to 5.2% in July from 5% in June.