The unemployment rate in China hit a record high, with 20.4% of youth between 16 and 24 years old unemployed.
The unemployment rate in China has reached an all-time high, with 20.4% of people unemployed as of April 2023. This figure is approximately four times the overall unemployment rate. If this trend continues to grow, then the situation is expected to worsen in the next few months as nearly 12 million new job seekers graduate from universities.
The current trend of rising unemployment puts pressure on educators and policymakers. The recent scenario is likely to increase competition in the labour market. Authorities recently took some steps to stop youth unemployment.
As per Bloomberg News, “The government has asked state-owned enterprises to hire at least as many graduates this year as they did last year.” According to analysts, skill or course mismatch is the major factor that leads to unemployment. Even a recent study focusing on Chinese graduates reveals that every third respondent is facing a “horizontal mismatch” between their degrees and their expectations of the labour market.
Apart from that, around 24% of the people were dealing with vertical mismatch, wherein they are overqualified compared to the job they hold. The worsening unemployment rate raises questions about the workings of Chinese universities.
Some observers and academics are calling for a greater emphasis on teaching in the nation’s universities. China’s universities are in the middle of the conversation around the spread of unemployment among youth in China. Now, the Chinese universities will be under pressure to play a major role in boosting graduate outcomes.