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China's urban youth unemployment rate soared to 18.9% in August, marking the highest level since Beijing revised its calculation methodology in 2023. This surge comes as a record number of university graduates, estimated at 12.7 million, entered the job market. The jobless rate for those aged 16 to 24, excluding students, increased from 17.9% in July to 18.9% in August, while the rate for those aged 25 to 29 rose slightly to 7.5% in August from 7.2% in July.

The job market is under pressure from weak domestic demand and the growing adoption of artificial intelligence. Zhang Lin, a recent software engineering graduate from Tianjin, reported spending over a month searching for work in Shenzhen without success. She attributes her struggles to AI, which she believes is reducing entry-level coding roles and increasing competition. Zhang noted that AI can generate code faster and more efficiently than humans.

A report by the International Labour Organization revealed that around 7.5% of jobs held by workers aged 15 to 29 in East Asia are in occupations particularly vulnerable to AI. If just 10% of these roles were to vanish, the region could face 1.5 million additional young people without employment, either switching to another job or leaving the workforce.

Chinese authorities have sought to address this issue by expanding vocational education and technical training programs. However, many jobseekers remain skeptical about whether these measures will significantly improve their employment prospects. Zhang expressed her determination to secure a job, emphasizing that the priority is to find employment and regain her confidence.