via dnyuz:
China’s economy is in crisis – and the nation’s youth unemployment problem could be at the root of its current troubles, according to Northwestern University economist Nancy Qian.
“To stem the reversal of its economic fortunes, China must address the root of the problem: the lack of high-paying, high-skilled jobs,” Qian said in an op-ed for Project Syndicate this week. “If the economy is going to grow (or at least avoid a contraction) in the long run, the government must create the conditions for job creation in high-productivity sectors, and for greater investment in higher education.”
Qian pointed to rampant unemployment among China’s younger generation, with a record 21% of workers aged 16-24 out of a job in the second quarter, according to China’s National Bureau of Statistics.
That’s largely been driven by the lack of high-skill and high-paying jobs in China’s employment market, which have left many college graduates unable to find work.
It’s also been exacerbated by a number of initiatives China has undertaken in the recent years. In 2021, the government banned online tutoring to reduce pressure on schoolchildren, but that’s had the effect of reducing the number of available jobs in the tech industry, Qian said.
The government has also pushed to increase China’s fertility rate, which has made employers hesitant to hire younger women.