China’s Unemployment Soars: 14.9% Youth Unemployment in 2023

<div><img width="1000" height="625" src="https://www.financebrokerage.com/wp-content/uploads/2022/07/shutterstock_1825179080.jpg" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="China" decoding="async" loading="lazy" /></div><h1><strong>China’s Unemployment Soars: 14.9% Youth Unemployment in 2023</strong></h1>
<h4><strong>Key Points:</strong></h4>
<ul>
<li>The Chinese job market is experiencing unprecedented pressure with a decline in employment opportunities and salaries.</li>
<li>The Private sector’s decline has severe implications for the overall job market.</li>
<li>The youth unemployment rate in China, at 14.9% for the 16-to-24 age group, is a growing concern.</li>
<li>Analysts are calling for more aggressive stimulus measures, especially targeting the private sector, to mitigate the worsening employment crisis.</li>
</ul>
<p>The <a href="https://www.financebrokerage.com/the-impact-of-weak-chinese-growth-on-asian-currencies/">Chinese job</a> market is experiencing unprecedented pressure, with a marked decline in employment opportunities and salaries. Average monthly salaries in 38 major Chinese cities saw a significant decrease in the last quarter of 2023, signalling the largest drop since 2016. This downturn reflects the broader economic challenges faced by the nation, including a contracting private sector and increasing global uncertainties.</p>
<h2><strong>Private Sector: Over 60% GDP Contribution</strong></h2>
<p>The private sector constitutes a significant portion of China’s economy and workforce. It is facing the brunt of this economic downturn. With over 60% contribution to the GDP and more than 80% of urban jobs, the private sector’s decline has severe implications for the overall job market. The financial strain on firms has led to workforce downsizing. This resulted in a 1.3% drop in average monthly salaries across major cities, as reported by Zhilian Zhaopin, a major Chinese job recruitment platform. This salary drop is the most substantial since 2016, highlighting the severity of the current situation.</p>
<p>Human resource and headhunting services, vital for job market fluidity, have also been impacted. Data from Qichacha, a leading corporate database operator in China, shows a drastic reduction in the establishment of new companies in this sector. The ripple effect of the struggling job market is evident in these figures, which indicate a decrease from 41,200 new companies in 2019 to just 5,800 by the end of last year.</p>
<h2><strong>Youth Unemployment: 14.9% for 16-to-24 Age Group</strong></h2>
<p>The youth unemployment rate in China has become a critical concern. The National Bureau of Statistics revealed an adjusted jobless rate of 14.9% for the 16-to-24 age group, excluding students. This figure, reinstated in December after a six-month hiatus, is alarmingly high. The rate had previously been withheld following consecutive months of record highs. The situation is so dire that there has been a 92.9% increase in job seekers applying for positions overseas in the first half of last year, with nearly 30% of these individuals holding graduate degrees or higher.</p>
<p>Analysts are calling for more aggressive stimulus measures, especially targeting the private sector, to mitigate the worsening employment crisis. The current scenario of pay cuts and layoffs has become a new normal for workers in China, who face shrinking opportunities and growing uncertainties. Feng Peixin, a Beijing-based headhunter, warns that the employment market remains pessimistic, and job seekers may need to brace for an even more challenging year ahead.</p>
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