Youth unemployment in China is becoming a significant concern, casting doubt on the country’s economic success. World Bank data indicates a youth unemployment rate of approximately 17.7% in 2025, reflecting a slowdown in job opportunities despite a growing number of university graduates entering the workforce.
Official reports from 2025 reveal a rise in unemployment among individuals aged 16–24 to 16.9%. Social media highlighted the issue when a PhD graduate shared his employment as a food delivery worker, while a gas company announced hiring graduates for meter reading positions.
With millions of new graduates entering the job market annually, competition intensifies. China anticipates over 12 million university graduates in 2026, leading policymakers to explore new sectors like artificial intelligence for employment. However, many graduates end up in temporary or low-wage jobs unrelated to their fields of study, relying on family support or postponing major life decisions.
Economist Gao Shanwen, in a recent conference, described China’s youth as “lifeless,” a statement later removed from the internet. He mentioned a scenario where young people struggle economically, contrasting with prosperous older individuals and middle-aged individuals in despair. The economic environment in China presents challenges such as declining purchasing power and uncertain job prospects for the younger population.
China has implemented consumer subsidy programs to boost demand by encouraging the replacement of old household items and digital devices. These initiatives, initiated in 2024 and expanded in subsequent years, aim to stimulate consumption. However, the reliance on subsidies as a tool to support demand raises concerns about the sustainability of economic growth.
The uncertainty surrounding youth employment and economic conditions has led to soft domestic demand despite government stimulus efforts. Retail sales surge during subsidy periods but are deemed unsustainable, driven more by incentives than genuine consumer confidence. Projections suggest a slowdown in China’s growth rate from 5% in 2025 to around 4.4% in 2026 due to cautious spending habits and high savings rates among households.
The property sector, traditionally a pillar of household wealth, has also weakened, with declining housing prices and reduced investments dampening consumer spending. Questions have been raised regarding the accuracy of China’s official growth figures, with commentators suggesting systematic inflation in calculations, though direct data manipulation by the central government is deemed unlikely.
