A harbinger of China’s economic decline is back.
The rate of urban youth unemployment has been a commonly-cited gauge of the country’s financial stability. Last year — amid a stagnating economy and slackening labor market — it reached record highs.
In June 2023, the percentage of jobless 16- to 24-year-olds hit a peak of 21.3%. Then China stopped publishing the monthly numbers.
By December, the government had amended the data points to exclude students, releasing a much lower urban youth unemployment rate of 14.9%.
But as millions of college graduates have started looking for work, that figure is on the rise again. In August, the reformulated youth jobless rate hit a new high for the second month in a row of 18.8%.
It’s no secret that China’s economy is struggling. Local governments are saddled with debt. A real estate downturn has undermined a cornerstone of household wealth and eroded investor sentiment. Wary consumers are stockpiling cash. Major companies have cut staff.
Here’s a look at why economists say China’s youth jobless rate is a key indicator to watch.
www.latimes.com/world-nation/story/2024-09-25/chinas-youth-unemployment