China's youth unemployment rate climbed to 17.1% in July
Adds context throughout
By Joe Cash
BEIJING, Aug 16 (Reuters) -The jobless rate for 16- to 24-year olds in China, excluding students, rose to 17.1% in July from 13.2% in the prior month, the country's statistics bureau said on Friday, as employers in the lackluster $19 trillion economy held off on hiring .
A string of dismal indicators for July has analysts betting on the world's No.2 economy entering a period of prolonged sluggishness going into the second half of the year and beyond, as it grapples with one crisis after another, from a trade war to a prolonged property crisis and cautious consumer confidence.
Around 12 million students graduated this summer, but with even roles in remote rural areas attracting young Chinese with diplomas from top universities, aspiring professionals face the toughest job market in years.
Youth unemployment hit a record high of 21.3% in June last year, prompting China to halt publication of the closely watched benchmark, saying students still enrolled should be excluded.
The July figure was the highest in records since December 2023, when officials changed the methodology.
The rate last month for 25- to 29-year olds was 6.5%, and also excluded college students, and 3.9% for people between 30 and 59 years of age.
An official factory managers' survey for July suggested the production powerhouse's manufacturing sector remained reluctant to take on new staff, with its employment gauge last expanding in February 2023 and pointing to a somnolent domestic economy.
In contrast, employment in the services sector rose at its fastest pace in 11 months in July, a Caixin/S&P Global services purchasing managers' index survey showed, offering some cause for optimism to officials who are anxious that a job crisis among the young could test the economic leadership of the ruling Communist Party.
Reporting by Joe Cash; Editing by Christian Schmollinger and Muralikumar Anantharaman
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
