Disillusioned with the PartyAccording to China’s Bureau of Statistics, the unemployment rate among Chinese youths aged between 16 and 24 hit a record 20.4% in April.

According to China’s Bureau of Statistics, the unemployment rate among Chinese youths aged between 16 and 24 hit a record 20.4% in April. The expansion of college education created this huge supply of graduates, but the economy hasn’t recovered completely, causing a mismatch in employers and employees.

The situation is keeping the youth either unemployed or engaged in underemployment, which hurts China’s domestic consumption. According to China’s Bureau of Statistics, there are 6 million youths aged between 16 and 24 who are currently unemployed. Additionally, as per the estimation of Goldman Sachs, there are 3 million more unemployed youth compared to the pre-COVID-19 era.

The China+1 strategy, which focuses on diversifying businesses from China to other nations; and the US government’s move to curb the Chinese semiconductor industry, may have triggered this situation in China. The diminishing job prospects and rising mismatch between the aspirations of youths and government efforts to fulfil those aspirations could upset the social contract the CCP has with the people of China.

Considering this, the Chinese government has come up with an action plan to resolve the problem. In April, China’s

 aimed at matching jobs with young seekers more optimally. Under this, skills training and traineeships would be provided, as would a one-time expansion of hiring at state-owned enterprises and support for entrepreneurial ambitions.

CCP's unemployment problem

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