According to CNBC , data from the National Bureau of Statistics of China shows that the unemployment rate among the country's youth, aged 18-24 (who are out of school), skyrocketed to 18.8% in August. This means that 1 in 5 young people are unemployed. This is the highest level since the new calculation method was applied from the end of 2023.

In July, the unemployment rate for this group was 17.1%, and in June it was 13.2%.

The unemployment rate among those aged 25-29 (excluding university students) also rose to 6.9% in August, from 6.5% in July.

The unemployment rate for all age groups in urban areas also increased from 5.2% in July to 5.3% in August.

In addition to soaring unemployment, China's economy also posted disappointing numbers. Retail sales and industrial output grew less than expected.

Bank of America recently cut its 2024 GDP growth forecast for China to 4.8%, below Beijing's target of 5%. Citigroup also cut its forecast to 4.7%. UBS lowered its 2024 and 2025 growth forecasts for China from 4.9% and 4.6% to 4.6% and 4%, respectively.

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Young Chinese find it difficult to find jobs but are also afraid of working too hard. Photo: Getty Images.

What is happening to China?

In addition to the current situation of finding it very difficult to find a job right after graduating, the high unemployment rate among young people in China is also associated with a rather strange trend in this country in recent years: Many young people want to quickly escape the pressure of making a living, wanting to be fired to receive severance pay.

Many young people in China pursue the “tang ping” (calm) lifestyle, which means “lying flat,” a lifestyle of letting life take its course instead of working hard to contribute and earn money to support their lives. Young people refuse to marry, start a family, work overtime, or work desk jobs.

According to SCMP , many young people receive severance pay and one month's salary, often called a "layoff gift", and then go traveling.

Many graduates of prestigious universities in China also fall into this situation.

Finding a job is difficult, but even those who already have a job are under great pressure. The 996 work culture with its collective working methods and regimes and strict working schedules from 9am to 9pm, 6 days a week, is a big challenge for them.

This is a problem in China because after quitting their jobs and going on vacation to enjoy life, what will these young people do?

In addition to the carefree lifestyle of young people, the sharp increase in unemployment in China is also due to the serious decline in growth of the world's second largest economy, related to the crisis in the real estate market in the past few years.

Young people in China have had a hard time finding a job in the past three years, as service industries that once employed many fresh graduates have been severely weakened, especially real estate, finance and information technology.

Businesses are not hiring new students due to concerns about economic stagnation and the costs involved in laying off employees.

The job outlook is so bleak that Beijing has called on businesses to create jobs for young people. Food delivery giant Meituan has responded with a plan to hire 6,000 new graduates by 2025, making many believe that the joke of “graduates becoming delivery drivers” has become a reality.

On Caixin, Meituan denied the information that it recruited 80,000 master's degree holders and 300,000 college graduates as shippers, but before that, CEO Wang Xing said that it recruited 5,000 graduates each year and planned to recruit 6,000 students in 2025.

In May, China's leaders said tackling youth unemployment should be a “top priority.”

High unemployment and/or low incomes will put pressure on consumers and reduce spending. This will further aggravate the economic recession.

However, China’s economic outlook remains bleak. The country is still facing long-term problems, including a major housing downturn. The economy is stagnant and appears to be headed in the same direction as Japan.

In the early 1990s, Japan saw its housing bubble burst. The country failed to provide economic support, leading to a prolonged recession.

Surpassing Jack Ma, China's former richest billionaire is facing difficulties . The secretive billionaire surpassed Alibaba's Jack Ma, standing above the owner of the WeChat super app and the founder of the TikTok platform, thereby becoming the richest person in China for 2 weeks in mid-August. However, this tycoon is facing difficulties, with his stock price falling rapidly.