China's youth jobless rate hits 17.9% amid graduate surge, slowdown

China's youth jobless rate surged three percentage points to 17.9 per cent in July from 14.9 per cent in June, according to data released Wednesday by the National Bureau of Statistics. The figure represents the second-highest rate recorded in recent times, trailing only the 18.9 per cent peak recorded in August last year, and matching near-record levels as the world's second-largest economy grapples with slowing growth.

The sharp rise in unemployment among those aged 16-24, excluding students, coincides with the entry of a record 12.7 million university graduates into the job market in July and August, representing a four per cent increase from the same period last year. The flood of graduates seeking employment comes as China's economic growth continues to decelerate, constraining employer demand for new workers across sectors.

Unemployment pressures are not limited to entry-level graduates. The jobless rate for those aged 25-29 also climbed to 7.2 per cent in July, up marginally from 7.1 per cent in June, suggesting broader weakness in the labour market extends beyond fresh graduates competing for their first positions.

The deterioration in youth employment marks a significant departure from China's recent economic history, when decades of exceptional growth rates generated sufficient jobs to absorb new workers without difficulty. Officials are now confronted with the challenge of managing labour market expectations among a generation entering the workforce during a period of economic moderation.