The Times Australia
Google AI
The Times World News

.

China's youth unemployment problem has become a crisis we can no longer ignore

  • Written by Christian Yao, Senior Lecturer, Te Herenga Waka — Victoria University of Wellington
China's youth unemployment problem has become a crisis we can no longer ignore

Youth unemployment is a global problem, but in China the rate - 21.3%[1] - is particularly alarming, not just because it’s high, but because it could affect other economies and geopolitical relations.

The release of the rate, which more than doubled the pre-COVID rate of May 2018, coincided with China’s National Bureau of Statistics announcing it would no longer report age specific data because it needed to “improve and optimise labour force survey statistics[2]”.

Youth unemployment is a complex issue, but even more so in China as a result of government policy and society’s expectations.

Under the Hukou system, households in China are required to register, and authorities then determine where they live and work and which public services they can access.

The system often stops rural residents taking advantage of urban opportunities, which can limit their work prospects.

The stress and uncertainty experienced by this demographic is only worsened by the expectations that come with being the only child in the family as a result of China’s one child policy, which was abandoned only seven years ago.

Visual Capitalist[3] The “Ant Tribe” phenomenon The term “Ant Tribe” was coined in 2009[4] by sociologist Lian Si to describe highly educated young people stuck in low-paying, temporary jobs that hinder skill advancement. These young people can’t accumulate social capital, leading to a negative cycle that’s hard to escape. This diminishes their return on their investment in education and highlights a breakdown in the career ecosystem. The “Ant Tribe” phenomenon is more than just a sign of a flawed economy. It also reveals a deeper emotional and psychological issue. Being over educated and underemployed causes significant emotional trauma[5], including anxiety, depression and hopelessness. This emotional toll is further complicated by societal shifts such as the “lying flat[6]” movement and the rise of “full time children[7]” in China. These trends challenge traditional markers of success and redefine family expectations, adding another layer to the psychological complexities faced by the younger generation. The impact can be long-lasting, leading to a less productive and innovative workforce[8]. Weaknesses in the education system Despite rapid expansion in higher education, a disconnect exists between university curricula and job market needs. Programs often favour theory over practical skills, leaving graduates ill-equipped for work. For example, engineering students might focus on equations and theories but miss out on real-world applications such as internships. Chinese students in a classroom taking notes Overqualified candidates flood the jobs market, forcing many to return to study. Shutterstock[9] Additionally, the market faces a glut of overqualified candidates, especially in the technology, finance and healthcare sectors. This imbalance drives many towards further studies. In 2023, a total of 4.74 million students took the postgraduate entrance exam, a staggering 135% increase[10] on the 2.01 million test takers in 2017. This cycle exacerbates youth unemployment and underemployment. The wider impact The ripple effect of China’s youth unemployment crisis is not to be underestimated. Drawing on warnings from UNICEF[11], high unemployment rates can lead to civil unrest[12], especially in nations with a large youth population. The Chinese Communist Party has long maintained its authoritarian approach[13] by securing a social licence based on economic stability and prosperity. If rising youth unemployment erodes this licence by fostering political disengagement or radicalisation, China could experience a significant internal power shift[14]. In a globally connected world, such turmoil could spill over into international relations. Civic unrest can make a country less stable and thus less attractive to foreign investment[15], especially among nations with close economic ties to China. Read more: Inside the world's largest higher education boom[16] Such an internal upheaval also threatens to destabilise supply chains globally, given China’s pivotal role in global supply chains[17]. Historical examples such as the Arab Spring[18] and Brexit[19] show internal dissatisfaction and social unrest can have ripple effects on a country’s international relations. The Arab Spring led to the overthrow of multiple governments, created regional instability, influenced global oil prices, and necessitated the resetting of foreign policy by Western countries. Large group of people carrying placards protesting against Brexit Instability in Britain caused by Brexit led to changes in foreign policy. Shutterstock[20] Similarly, Brexit impacted global trade agreements, led to political realignment, and caused the European Union to reconsider its future direction[21], affecting its collective foreign policy. While youth unemployment is a global dilemma, the extent of the problem in China and its potential broader impact on interconnected economies means we can’t afford to ignore it. What can China do to solve the problem? China can find policy inspiration from successful initiatives in other countries, such as Germany’s dual vocational training system[22]. This system ensures students are both academically prepared and practically skilled, better aligning education with labour market demands. Addressing the urban/rural divide is equally crucial. By offering financial incentives including tax breaks and grants, China could promote job growth in rural areas. Australia and the United States have adopted similar models to attract healthcare workers to less populated regions[23]. China also needs to do something to reduce the emotional toll of chronic unemployment which worsens the longer graduates are out of work. Post-COVID, the issue is exacerbated, with 40% of Chinese youth reported[24] to be susceptible to mental health challenges. This is where mental health services[25] such as those available in Australia that are tailored to young people[26] could help. Besides benefiting the individual, these programs contribute to a more engaged, productive workforce essential for national well being. Read more: Young, educated and underemployed: are we building a nation of PhD baristas?[27] The precarious nature of the gig economy can further deepen the unemployment crisis. Some European countries such as France[28] and the Netherlands[29] consider gig workers employees and offer social security benefits. A similar model could be implemented in China, providing benefits such as health insurance and retirement plans. Finally, the scale and complexity of youth unemployment requires a multi-pronged approach that extends beyond national borders. Countries should actively share successful employment strategies and cooperate on international initiatives to create job opportunities for youth. Collaboration is the key to developing a globally stable, productive young workforce. Investing in young people isn’t just good policy. It’s a moral imperative for global stability and shared prosperity. References^ 21.3% (www.visualcapitalist.com)^ improve and optimise labour force survey statistics (www.nytimes.com)^ Visual Capitalist (www.visualcapitalist.com)^ coined in 2009 (www.abebooks.com)^ emotional trauma (hbr.org)^ lying flat (www.bloomberg.com)^ full time children (edition.cnn.com)^ less productive and innovative workforce (pubmed.ncbi.nlm.nih.gov)^ Shutterstock (www.shutterstock.com)^ 135% increase (www.statista.com)^ UNICEF (www.unicef-irc.org)^ civil unrest (www.epi.org)^ authoritarian approach (theconversation.com)^ internal power shift (www.bloomberg.com)^ less attractive to foreign investment (onlinelibrary.wiley.com)^ Inside the world's largest higher education boom (theconversation.com)^ global supply chains (www.gmfus.org)^ Arab Spring (theconversation.com)^ Brexit (theconversation.com)^ Shutterstock (www.shutterstock.com)^ caused the European Union to reconsider its future direction (www.jstor.org)^ dual vocational training system (www.bibb.de)^ less populated regions (www.ruralhealth.org.au)^ reported (www.ncbi.nlm.nih.gov)^ mental health services (headspace.org.au)^ young people (www.headtohealth.gov.au)^ Young, educated and underemployed: are we building a nation of PhD baristas? (theconversation.com)^ France (www.reuters.com)^ the Netherlands (www.reuters.com)

Read more https://theconversation.com/chinas-youth-unemployment-problem-has-become-a-crisis-we-can-no-longer-ignore-213751

Times Magazine

Narwal Freo Z Ultra Robotic Vacuum and Mop Cleaner

Rating: ★★★★☆ (4.4/5)Category: Premium Robot Vacuum & Mop ComboBest for: Busy households, ha...

Shark launches SteamSpot - the shortcut for everyday floor mess

Shark introduces the Shark SteamSpot Steam Mop, a lightweight steam mop designed to make everyda...

Game Together, Stay Together: Logitech G Reveals Gaming Couples Enjoy Higher Relationship Satisfaction

With Valentine’s Day right around the corner, many lovebirds across Australia are planning for the m...

AI threatens to eat business software – and it could change the way we work

In recent weeks, a range of large “software-as-a-service” companies, including Salesforce[1], Se...

Worried AI means you won’t get a job when you graduate? Here’s what the research says

The head of the International Monetary Fund, Kristalina Georgieva, has warned[1] young people ...

How Managed IT Support Improves Security, Uptime, And Productivity

Managed IT support is a comprehensive, subscription model approach to running and protecting your ...

The Times Features

Small, realistic increases in physical activity shown to significantly reduce risk of early death

Just Five Minutes More a Day Could Prevent Thousands of Deaths, Landmark Study Finds Small, rea...

Inside One Global resorts: The Sydney Stay Hosting This Season of MAFS Australia

As Married At First Sight returns to Australian screens in 2026, viewers are once again getting a ...

Migraine is more than just a headache. A neurologist explains the 4 stages

A migraine attack[1] is not just a “bad headache”. Migraine is a debilitating neurological co...

Marketers: Forget the Black Box. If You Aren't Moving the Needle, What Are You Doing?

Two years ago, I entered the digital marketing space with the mindset of an engineering student ...

Extreme weather growing threat to Australian businesses in storm and fire season

  Australian small businesses are being hit harder than ever by costly disruptions...

Join Macca’s in supporting Clean Up Australia Day

McDonald’s Australia is once again rolling up its sleeves for Clean Up Australia Day, marking 36...

IFTAR Turns Up The Heat With The Return of Ramadan Nights From 18 February

Iftar returns to IFTAR, with the Western Sydney favourite opening after dark for Ramadan  IFTA...

What causes depression? What we know, don’t know and suspect

Depression is a complex and deeply personal experience. While almost everyone has periods of s...

5 Cool Ways to Transform Your Interior in 2026

We are at the end of the great Australian summer, and this is the perfect time to start thinking a...