China’s Youth Unemployment Rate Increases to 16.9% as Economic Pressures Mount
February saw China’s youth jobless rate reach 16.9%, with the overall unemployment rate at 5.4%. This increase follows previous trends, as officials resume reporting after previously halting updates. Leaders emphasize fiscal support for the economy, aiming for around 5% growth in 2025, though analysts express doubts about meeting this target.
In February, China’s youth unemployment rate rose to 16.9%, marking the second consecutive month of increases. The National Bureau of Statistics reported that this figure climbed from 16.1% in January, indicating ongoing challenges for young job seekers in urban areas. Furthermore, the unemployment rate for individuals aged 25-29 increased to 7.3%, while the figure for those aged 30-59 rose to 4.3%.
The overall urban jobless rate in China reached a two-year high of 5.4%, reflecting broader economic difficulties. After a record youth unemployment rate of 21.3% in June 2023, official statistics regarding youth joblessness were temporarily withheld. The National Bureau of Statistics later resumed reporting in December 2023, modifying the methodology to exclude students from their calculations, thereby potentially skewing the perception of youth employment.
It is important to note that the unemployment rate does not capture those who have ceased job searching, nor does it reflect employment conditions in rural areas of China. In response to the rising jobless rates, Chinese leaders have committed to enhancing fiscal and monetary support to stimulate economic growth, focusing on boosting domestic consumption amidst trade challenges from the United States.
Top officials have set an economic growth target of approximately 5% for 2025, though many analysts express skepticism about achieving this due to ongoing pressures affecting exports, subdued household demand, and the prolonged property crisis affecting the nation’s economy.
The rise in China’s youth unemployment rate to 16.9% in February underscores significant challenges faced by the nation’s young workforce amidst a broader economic downturn. With the urban jobless rate reaching a two-year high, the commitment from Chinese leaders to strengthen fiscal and monetary support reflects an urgent response to the growing crisis. Analysts remain cautious regarding the feasibility of achieving economic growth targets amid ongoing external pressures and domestic challenges.
Original Source: www.tradingview.com
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