fbpx
Market intelligence for international student recruitment from ICEF
17th May 2023

Youth unemployment reaches record high in China

Short on time? Here are the highlights:
  • Unemployment among 16-to-24 year olds in China reached a record high last month
  • This partly reflects an uneven recovery thus far in the Chinese economy, but also the growing numbers of graduates each year and the apparent mismatches between their degree qualifications and labour market requirements

China's youth unemployment rate (the proportion of unemployed 16-to-24-year-olds) hit a record high of 20.4% in April 2023. This is roughly four times the overall unemployment rate, and the situation is expected to worsen in the next few months as just under 12 million new job seekers graduate from Chinese universities.

China's youth unemployment and overall unemployment rates, 2018–2023 YTD. Source: China's National Bureau of Statistics; Bloomberg

The trend of rising unemployment for new graduates is placing pressure on educators and policy makers alike and will result in more intense competition in the labour market this year.

"Authorities have taken some steps in recent weeks to try and stop youth unemployment from spiralling out of control," reports Bloomberg News. "The government has asked state-owned enterprises to hire at least as many graduates this year as they did last year. The State Council, China’s cabinet, also last month published a detailed plan laying out measures to expand recruitment and provide subsidies to employers to incentivize them to make more hires."

Analysts point to a skills mismatch as an important factor behind the surging unemployment rolls, alongside a slower-than-projected recovery of the Chinese economy following the end of COVID lockdown restrictions.

One recent study, which relied in part on a survey of Chinese graduates, found that roughly a third of respondents were experiencing a “horizontal mismatch” between their degrees and what the labour market requires (i.e., they were working in jobs that were not related to their field of study). Another 24% were dealing with a “vertical mismatch,” which is to say they were overqualified for the jobs they held.

This reflects in part that some of the lower-level service sectors are leading the recovery of the Chinese economy this year, meaning that jobs for degree-qualified candidates are hard to come by. But the worsening unemployment rate, and the apparently widespread mismatches between graduate qualifications and employer requirements, are also raising questions about how well Chinese universities are preparing graduates for the world of work.

Some academics and observers are now calling for a greater emphasis on teaching in the nation's universities (as opposed to research for publication) and also for a sharper focus on practical skills, including "soft skills" such as critical thinking, problem solving, and working in teams.

In this sense, China's universities are in the middle of the developing conversation around youth unemployment in China, and will be under pressure to play a role in boosting graduate outcomes going forward.

For additional background, please see:

Most Recent

  • Language travel sector leaders call for a focus on value amid persistent discount pressure Read More
  • Canada: List of non-degree college programmes linked to post-study work rights has changed Read More
  • US administration revives proposal to limit terms of student visas Read More

Most Popular

  • Which countries will contribute the most to global student mobility in 2030? Read More
  • Research shows link between study abroad and poverty alleviation  Read More
  • Beyond the Big Four: How demand for study abroad is shifting to destinations in Asia and Europe Read More

Because you found this article interesting

Canada: List of non-degree college programmes linked to post-study work rights has changed The Canadian government is continuing its policy of linking eligibility for a post-study work permit (PGWP) – at...
Read more
US administration revives proposal to limit terms of student visas The Trump administration has given notice of a proposed rule change that seeks to limit the term for...
Read more
How have changes in policy settings impacted international student recruitment at Australian universities? Over the past couple of years, Australian universities have been operating within a policy framework that makes it...
Read more
New analysis sounds a note of caution for UK immigration reforms Within the UK’s higher education system, there are a group of institutions known as “Post-1992 universities”. The term...
Read more
US warns of expanded travel ban that could affect key African markets “The United States is considering restricting entry to citizens of an additional 36 countries in what would be...
Read more
Breaking: US resumes student visa processing On 18 June, the US State Department sent a cable to all US diplomatic posts abroad instructing them...
Read more
Is Canada valued more as a “pathway to immigration” or as a destination for education? During a 12 June 2025 webinar presented by the Canadian Bureau for International Education (CBIE) and IDP, IDP...
Read more
Japanese outbound numbers reached 90% of pre-pandemic levels in 2024 An annual survey of Japanese education agents finds that outbound student numbers from this key sending market are...
Read more
What are you looking for?
Quick Links