Communist China’s Unemployment Rate Reaches a Record High

According to the latest data from Communist China’s National Bureau of Statistics, the youth unemployment rate has reached 19.9% in July. Which is the highest rate since Beijing began publishing data on young unemployment in January 2018, and when it stood at 9.6%.

The strict Zero-Covid policy has repeatedly paralyzed production and supply chains; moreover, the global social environment is also difficult. Zero-Covid policy has disturbed supply chains and lowered consumer confidence, and worse, the massive real estate industry of the country is faltering. Both domestic and foreign companies are reluctant to invest. All of these also causing huge social problems. Many college graduates can no longer find a job; the youth unemployment rate is up to a record high.

According to the data from National Bureau of Statistics, from January to August period, profits of Chinese industrial enterprises shrank by 2.1% than the same period last year. Imports barely grew, indicating the sluggish industrial demand for raw material and intermediate goods. People also spend less or simply do not spend on things they really do not need in retail or travelling.

Additionally, foreign companies have a sense of fatigue with China. The inflexible and frequently enforced Zero-Covid policy leads to that “companies feel a great deal of uncertainty about the future.”

In China, mainly young people are struggling in the depressed economy. The youth unemployment rate has never been higher than what it is now. The depressed economy can hardly provide any jobs offers, which has led to a record high unemployment rate among youth aged 15 to 24. The National Bureau of Statistics data shows that rate has reached 19.9% in July, the highest rate since Beijing began publishing data on young unemployment in January 2018, when it stood at 9.6%.