China’s economic recovery fails to create jobs for young workers, triggering social strife

Analysts say excessive youth unemployment could endanger societal stability, according to reports.

As China gradually leaves behind its stringent zero-Covid policy after three years, its economic recovery appears to be on track. Rising youth unemployment, however, underscores how difficult it will be for the new government to meet its economic goals and preserve social order.

Citing Geo-politik, news agency ANI reported, China is heading towards social instability as youth unemployment rises to a historical level.

In addition to problems like debt and sluggish growth, the high unemployment shows that China's economic situation is glum in the wake of the disastrous repercussions of the zero-Covid policy.

The report further added that a skewed economic recovery and chronic youth unemployment were especially of concern, given that a record 11.58 million students graduated this year.

However, China is urging its jobless graduates to 'roll up their sleeves' and attempt physical labour to earn their livelihood.

Last month, the Communist Youth League castigated young graduates for refusing to "tighten screws in factories," and urged them "take off their suits, roll up their sleeves, and go to the farmland", according to a report by Financial Times.

On social media, however, the government has been mocked by unemployed youth for failing to produce enough jobs for the rising numbers of educated youth, according to reports.

China’s National Bureau of Statistics released key economic indicators for February and March last month. From a three-month high of 5.6 percent in February, China's surveyed urban unemployment rate dropped to a seven-month low of 5.3 percent in March 2023. While the unemployment rate for individuals between the ages of 25 and 59 dropped from 4.8 percent in February to 4.3 percent in March, it rose from 18.1 percent to 19.6 percent for those between the ages of 16 and 24.

Chinese youth seek alternatives

Slower manufacturing and a weak IT sector may be the two major forces behind persistent youth unemployment, according to reports.

Fears about social mobility are causing some Chinese youngsters to challenge conventional norms around families and employment. An example of this is the "tang ping" or "lying flat" movement, which promotes doing the bare minimum to get by rather than working hard for uncertain long-term returns.

Then there’s the "moonlight clan,"  a group of young Chinese who deliberately live paycheque-to paycheque — purchasing luxuries like vacations abroad to make up for longer-term disappointment.

Analysts say excessive youth unemployment could endanger societal stability, according to reports.

China's economic recovery

Industrial production increased 2.4 percent in March, as opposed to 1.3 percent in December. Retail sales rose 3.5 percent in March, reversing a 1.8 percent dip in February.

Despite the fact that China's economic recovery has started to pick up steam, with growth rebounding to 4.5 percent in the first quarter after pandemic restrictions were lifted early this year, youth unemployment has been a significant cause for concern.