The 2024 class of university graduates in China is the largest ever, at 11.8mn. They are entering a labour market showing record youth unemployment.
Media reports, in summary, outline the cornering situation facing the oldies clinging on to power in the Politburo.
Youth unemployment (16-24) hit 18.8% in August, near all-time highLess than 30% of firms hiring as many new grads as last year due to cost-cuttingKey sectors for youth employment struggling:
Property sector in crisisTech and internet industry facing regulatory pressuresTutoring industry hit by crackdownsGovernment temporarily paused reporting youth unemployment data in 2023Resumed with new calculation method, excluding current studentsRate climbed back up despite methodological changesRecent stimulus measures announced, but effectiveness questioned by somePresident Xi promises support for workers and poor families, details lackingSome estimates put real youth unemployment much higher, potentially up to 46.5%Employed youth facing gruelling work conditions due to employer leverage
Its not only in China where ageing politicians are out of touch with conditions facing younger people.
But China’s stimulus is in the news, now you know why the rush.
ps. China is in Monday, but from tomorrow its week-long holiday time:
This article was written by Eamonn Sheridan at www.forexlive.com.
Leave a comment