China's youth unemployment rate has surged to an 11-month high, driven by the influx of college graduates entering the job market.

According to the National Bureau of Statistics of China today (the 19th), the unemployment rate for urban youths aged 16 to 24 (excluding students) stood at 17.9% in July, rising 3.0 percentage points from the previous month (14.9%).

This is the highest level in 11 months since August of last year (18.9%).

China's youth unemployment rate rose 0.8 percentage points from the previous month to 16.9% in March, but then declined for three consecutive months starting in April, dropping to a one-year low of 14.9% in June.

As for unemployment rates by other age groups last month, the rate for those aged 25 to 29 (excluding students) inched up to 7.2% from 7.1% the previous month, while the rate for those aged 30 to 59 fell to 3.9% compared to 4.0% the previous month.

The local youth unemployment rate has historically shown a seasonal characteristic of spiking in July and August as university graduates enter the labor market in full force.

The youth unemployment rate, which stood at 13.2% in June 2024, rose to 17.1% in July and 18.8% in August. Last year, it also climbed from 14.5% in June to 17.8% in July and 18.9% in August.

This year's surge is also interpreted as a result of intensifying job competition among young people as a record-large number of college graduates jumped into the job market.

China's college graduates this year are estimated to reach a record 12.7 million, which is about a 4% increase from last year.

Meanwhile, Chinese authorities suspended the publication of youth unemployment data after it soared to a record 21.3% in June 2023, and resumed releasing related figures in December of that year under a new criteria that excludes currently enrolled middle school, high school, and university students.

(Photo: Getty Images)