China continues to face unemployment as 18.7 per cent of youngsters aged between 16 and 24 are jobless in the country, which is a slight decline from a record high of 19.9 per cent in July, according to official data.
Global Times reported citing National Bureau of Statistics (NBS) data that last month the national urban surveyed unemployment rate was 5.3 per cent, down 0.1 percentage points from the previous month.
“In August, the unemployment rate among the people aged between 16 and 24 stood at 18.7 per cent, 1.2 percentage points lower than July,” Global Times reported.
Earlier, NBS said that youth jobless rate in China has hit a record high of 19.9 per cent.
Chinese local media portal Global Times while citing the Ministry of Education had noted that the number of college graduates in 2022 is expected to reach 10.76 million, exceeding 10 million for the first time, which is 1.67 million more than 2021.
Meanwhile, Urban unemployment stood at 6.1 per cent in April, followed by 5.9 per cent in May, and 5.5 per cent in June.
The youth jobless rate climbed to a record of 19.9 per cent in July, compared with 19.3 per cent in June and 18.4 per cent in May.
Moreover, businesses have slowed their pace of recruitment due to the impact of the COVID epidemic. In particular, the slow recovery of the tertiary industry has also hindered the employment of young people.
Earlier, the top Chinese talent used to aim for the Fortune Global 500 companies, large internet platforms, consulting agencies or law firms in cities such as Beijing and Shanghai. But this year, graduates have been intimidated by a torrent of news on social media about mass lay-offs at tech, entertainment, private tutoring and real estate companies as the Chinese economy is battered by stringent coronavirus control measures and regulatory crackdowns, according to Financial Post, a US-based publication.
The young population are losing the faith in private companies and is willing to accept lower pay in the state sector.
According to the publication, if the trend continues, growth in the Chinese economy stands to suffer. The regulatory filings show that China’s top five listed education companies reduced their staffing by 1,35,000 in the last year after the crackdown.
Moreover, a number of colleges and vocational school graduates that would be entering the job market, observed that there is a mismatch between available roles and jobseekers’ expectations.
Under the covid outbreak, various private companies laid off their employees and this is the reason that 39 per cent of graduates listed state-owned companies as their top choice of employer last year, according to the publication citing recruitment company 51job Inc.
To meet its employment goals, economists say China needs GDP to increase between 3 per cent and 5 per cent this year. However, the country is predicted to achieve a growth rate closer to 4per cent–with the outlook highly uncertain due to the prospect of more lockdowns to contain the spread of the coronavirus.