Posted on May 30, 2023
China's youth unemployment hits a record high, deepening its economic scars
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"As youth unemployment in China rises to a record high, college graduates are caught in a perfect storm — with some forced to take on low-paying jobs or settle for jobs below their skill levels."
China's youth unemployment hits a record high, deepening its economic scars
Posted from cnbc.com
China
Generation
Employment
Posted 11 mo ago
Responses: 2
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LTC Eugene Chu
In the US, college graduates are getting aligned jobs that barely pay off loans. In India and China, some graduates are unemployed or working menial jobs that don't require degree.
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LTC Eugene Chu
..."Cyclical issues
China’s “zero Covid” policy during the pandemic led to factory closures and a two-month lockdown in the financial capital of Shanghai last year, as the broader economy ground to a halt.
Goldman Sachs says the slackening in the services sector at the start of the year, before China reopened, could have contributed to the current high youth unemployment rate.
However, analysts from the U.S. investment bank estimate that China’s youth unemployment rate will likely peak in the summer months in July and August with the influx of fresh college graduates.
Goldman Sachs economists say that getting young people back to work would help China’s economic recovery since it would restore the consumption power of the young, a demographic that typically accounts for almost 20% of consumption in China.
Except the jobs may not match what they desire or are trained to do.
“I think it’s ironic that nowadays, having a college degree is no longer sufficient to land a high-skilled job for most college graduates,” said Lu.
“But at the same time, it’s becoming unnecessary because everyone else is getting it.”...
..."Cyclical issues
China’s “zero Covid” policy during the pandemic led to factory closures and a two-month lockdown in the financial capital of Shanghai last year, as the broader economy ground to a halt.
Goldman Sachs says the slackening in the services sector at the start of the year, before China reopened, could have contributed to the current high youth unemployment rate.
However, analysts from the U.S. investment bank estimate that China’s youth unemployment rate will likely peak in the summer months in July and August with the influx of fresh college graduates.
Goldman Sachs economists say that getting young people back to work would help China’s economic recovery since it would restore the consumption power of the young, a demographic that typically accounts for almost 20% of consumption in China.
Except the jobs may not match what they desire or are trained to do.
“I think it’s ironic that nowadays, having a college degree is no longer sufficient to land a high-skilled job for most college graduates,” said Lu.
“But at the same time, it’s becoming unnecessary because everyone else is getting it.”...
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