Opinion | China must protect its private economy to solve its youth unemployment crisis
- While China’s latest youth unemployment rate is comparable to global figures, it is particularly concerning given the country’s unique demographic structure
- China must boost private entrepreneurship and create a tolerant social atmosphere to help its young workers find jobs and feel better
While the headline figures are nothing exceptional – the global ratio of NEETS, or “not in education, employment or training”, in the age group of 15-24 exceeded 20 per cent in 2020 – they present a particularly worrisome picture in China, given the country’s population size and unique demographic structure.
According to China’s official statistics, the size of its youngest labour population – defined as people born between 1999 and 2007 – is over 150 million, so 20 per cent would be roughly 30 million people. The numbers do not include workers aged 15 because they are below the minimum legal work age.
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A large portion of young Chinese men and women are still in school and not in the job market, but if, say, half or a third of them are unemployed, that would mean millions of Chinese households are struggling.
The disappointment experienced by unemployed youth themselves can also dampen the society’s morale. These young people were raised being told that the sky is the limit, but the cold reality is that they cannot even find a job to support themselves.
As the youth jobless rate rises, there has been a noticeable sentiment change in Chinese society: people seem to increasingly prefer stability over possibility. If this situation continues, it is set to cast a long shadow over the nation’s economy and demographic structure.
