China’s Youth Unemployment Hits Two-Year High As Xi’s Economic Troubles Deepen

China’s youth unemployment has surged to its highest level in two years, deepening concerns about the country’s slowing economy and strained job market, the South China Morning Post (SCMP) has reported.

According to official data released by the National Bureau of Statistics, the jobless rate among urban youth aged 16 to 24, excluding students, climbed to 18.9 per cent in August, up from 17.8 per cent in July. This marks the highest level since Beijing revised its unemployment calculations in late 2023.

The surge comes as 12.2 million university graduates entered the workforce this summer, facing a labour market weakened by deflationary pressures, a lingering property crisis, and uncertainty from the ongoing trade war. Many young jobseekers, despite holding university degrees, are being forced to accept low-skilled or temporary positions.

The SCMP cited the case of Maggie Li, a hotel management graduate from Hebei, whose job offer was abruptly rescinded. After multiple unsuccessful interviews, she said many employers had misrepresented the roles being advertised.

Analysts say the situation reflects deeper structural challenges. Barclay Bram, a fellow at the Asia Society’s Center for China Analysis, noted that highly educated youth now face an unprecedented disconnect between education and opportunity, fuelling frustration and disillusionment.

In response, Beijing has launched several initiatives to support jobless graduates, including training and job referral programs. But progress remains slow — in Chongqing’s Banan District, for instance, only 589 of 1,294 unemployed graduates found jobs by the end of July.

Meanwhile, the overall urban jobless rate in China edged up to 5.3 per cent in August.