Risks to China from unemployed youth rise

Significance

The timing is suspicious: urban youth unemployment hit an all-time high of 21.3% in June. This is around 6 million people aged 16-24, double the number before the pandemic. For the rest of the working-age population, urban unemployment was just 4.1%.

Impacts

• Some companies will struggle to find workers with the skills they need, especially in science and technology fields.
• Businesses could offer training and apprenticeships to develop workers’ much-needed skills.
• Some companies, such as those in services, will find many young people are over-qualified and have relatively high pay expectations.
• Companies may be pressured by local authorities to adjust their hiring and firing plans to keep young people employed.