China's youth jobless rate falls as economy rebounds

China has seen a significant decrease in urban youth unemployment, fueled by an economic recovery and the expansion of new industry sectors, new figures showed.

According to data released by the National Bureau of Statistics on Wednesday, the unemployment rate for urban non-student workers aged 16-24 fell to 13.2 percent in June from 14.2 percent in May, the lowest figure since December.

The rate among those aged 25-29 dropped to 6.4 percent from 6.6 percent in May, while the rate for the 30-59 age group remained stable at 4 percent. Experts attributed the improvement to the economic revival and government policies.

Experts said that while youth employment is on the rise, underemployment within this demographic group remains a problem. The development of emerging industries and future industries will be crucial for further boosting employment.

China's economy stabilized and recovered in the first half of the year, with rapid development in emerging industries like information technology, semiconductors and new energy, which has led to many high-quality job openings for young people, Mao Yufei, an associate professor at the Capital University of Economics and Business, told the Global Times on Wednesday.

Zhilian Zhaopin, a Chinese job-hunting platform, reported substantial hiring increases in new consumption and manufacturing sectors, with recruitment in logistics, hospitality and electronic technology rising by about 30 percent year-on-year.

The demand for talent in advanced technology sectors like artificial intelligence has also surged, with job openings for large language model development increasing by 605 percent year-on-year, according to Zhilian Zhaopin

China has introduced measures to support youth employment, focusing on encouraging university graduates to work at the grassroots level, offering entrepreneurship subsidies and urging state-owned enterprises to provide job opportunities.

The Ministry of Human Resources and Social Security is actively promoting employment services for new graduates this year, including launching specialized recruitment plans and campus hiring initiatives.

Despite these initiatives, Mao warned that employment support policies are short-term solutions and a sustainable approach is still needed.

"For a lasting solution, industrial policies must align with employment strategies to ensure the overall development of the economy, which will ultimately resolve the employment challenges faced by college graduates," Mao said.

Mao said that there's a mismatch in the job market between available positions and applicants' demands. He suggested that graduates need to adjust their goals, as traditional high-salary industries like real estate and finance are slowing down and reducing hiring.

More policies should be introduced to guide graduates toward working in strategic emerging fields, Mao said.