China’s urban youth unemployment rate has surged to 18.9% in August 2025, marking the highest level since the data revisions in 2023. This is an increase from 17.8% in July, indicating weaker job prospects amid the country’s ongoing economic slowdown. The job market has been further strained by deflationary pressures and external uncertainties. The unemployment rate specifically pertains to individuals aged 16-24, excluding students, reflecting the challenges faced by young people entering the workforce.
A record 12.2 million university students graduated this summer, and many are struggling to find roles that match their educational background and skills. This surge in graduate numbers has only added to the pressure on an already strained job market. Following a record youth unemployment rate of 21.3% in June 2023, China had halted the monthly release of youth jobless data for five months before resuming it in December with revised calculation methods. The government’s initial suspension of data raised concerns about transparency and the accurate portrayal of the nation’s economic struggles.
Additionally, the country’s overall economic data points to a weakening economy. Industrial production grew by 5.2%, while retail sales increased by 3.4%. However, fixed-asset investment showed the weakest growth since 2020, and consumer demand remains low, as indicated by a 0.4% drop in consumer price index (CPI)-based inflation.
