China has decided to stop sharing information about the unemployment rates among young people, which some considered a significant sign of the country’s economic slowdown. The reason for this decision is linked to changes happening in China’s economy and society, as explained by a government spokesperson.
In June, the percentage of jobless individuals aged 16 to 24 in cities reached a historically high level of over 20%. To help stimulate growth, China’s central bank reduced borrowing costs.
Official data released on Tuesday disclosed that China’s overall unemployment rate had climbed to 5.3% in July. However, the government didn’t specify when the halt on releasing youth unemployment data would end.
A representative from the National Bureau of Statistics stated that the way unemployment among young people is calculated needs to be reevaluated due to ongoing economic and social changes. The representative mentioned that the increase in the number of students aged 16 to 24 might have impacted the unemployment figures. However, China has traditionally not included students in its unemployment count.
China began publishing youth unemployment statistics in 2018, but it doesn’t currently provide data on young people’s employment in rural areas.
The decision to stop sharing youth unemployment data sparked discussions on Chinese social media platform Weibo. Some users expressed skepticism about the effectiveness of this approach to problem-solving.
This development comes as China’s economic rebound following the pandemic is slowing down. As part of efforts to boost growth, China’s central bank unexpectedly reduced key interest rates for the second time in three months.
China also faces concerns about its troubled real estate market. The largest private real estate developer in China, Country Garden, cautioned that it might experience substantial losses in the first half of the year. The real estate industry in China has been disrupted by new regulations that limit borrowing for major developers. Additionally, the significant property company Evergrande struggled with debt and reported significant losses recently.