China’s youth unemployment rate has been increasing rapidly in recent years. Many people in China also tend to avoid overwork and consumerism. Can China’s soaring unemployment rate impact the economy? China’s youth unemployment rate is a result of hypercompetitive work environments.
In June, China’s youth unemployment rate reached a record high of 21.3 per cent. China’s economic recovery has also weakened in recent months.
Troubles in the real estate sector have already affected China’s economy. Recently, the youth unemployment rate crossed 20 per cent. China’s consumer prices also contracted by 0.3 per cent in July.
In the wake of these trends, China’s unemployment rate can affect the economy. However, it cannot have a negative impact on China’s economy.
Is China’s economy in a bad state?
Currently, China’s economy is not in a bad state. The country’s economy grew 6.3 per cent year on year (YoY) in the second quarter of 2023.
After emerging from the impact of Covid-19 lockdowns, China has been adopting various measures to boost the country’s economy.
The International Monetary Fund, the main financial agency of the United Nations, has said that China’s GDP can expand by 5.2 per cent by the end of this year and 4.5 per cent by 2024.
We can’t say that the economy is in a bad state. However, the unemployment rate slightly affected the economy.
China has witnessed high economic growth for years. If people choose not to do a job, they will not be really poor. Many people choose to do business or have inherited assets from their grandparents. They will be richer than any other generations in China.
However, the unemployment rate can lead to political instability in the country. The Chinese government needs to solve the crises related to real estate, semiconductor bans and high unemployment rate. Chinese people prefer more high-paying jobs. The government can create a partnership with other countries to provide more high-paying jobs to Chinese people.