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Amid Economic Challenges, China Suspends Reporting on Youth Unemployment Figures

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China economic challenges has discontinued the release of youth unemployment data, which some analysts consider a notable indicator of the country’s slowdown.

Release of Youth Unemployment Data Amid Evolving Economy

China has opted to discontinue the public release of youth unemployment statistics, citing shifts within the world’s second-largest economy and its societal dynamics, according to a government spokesperson.

In June, the nation’s jobless rate for individuals aged 16 to 24 residing in urban areas surged to a historic peak, surpassing 20%.

To bolster growth, China’s central bank recently lowered borrowing costs.

On Tuesday, official reports unveiled that China’s overall unemployment rate had climbed to 5.3% in July.

Concurrently, the government announced a temporary halt to the publication of youth joblessness figures, though no specific timeline was provided for the suspension.

Addressing the development, a representative from the National Bureau of Statistics emphasized the need for a reevaluation of the methodology used to calculate unemployment among young individuals.

“Given the continuous evolution and transformation of the economy and society, statistical practices require ongoing enhancement,” remarked Fu Linghui during a press conference in Beijing.

China’s Youth Unemployment Data Suspended Amidst Growing Concerns

Mr. Fu Suggests Influence of Student Population on Youth Unemployment Figures, but Concerns Arise

china economic challenges decision to halt the publication of youth unemployment statistics has stirred discussions across its social media platform, Weibo. The move comes as part of the country’s ongoing efforts to navigate its post-pandemic economic revival, which is showing signs of deceleration.

Although Mr. Fu, a spokesperson from the National Bureau of Statistics, hinted at the impact of the expanding student demographic on unemployment figures for those aged 16 to 24, it’s worth noting that China has traditionally excluded students from its official unemployment count.

Youth unemployment data began being published by China in 2018. However, the nation currently does not disclose information regarding the employment status of young individuals in rural areas.

The suspension of the youth unemployment statistics immediately ignited conversations on Weibo, with various users expressing skepticism. One user commented, “Closing one’s eyes and covering one’s mouth – can that truly address the issue? With diverse employment scenarios, slow job creation, and self-employment, merely an hour of work can classify one as not unemployed. The Bureau of Statistics’ data should be taken with a grain of salt.”

Another post humorously stated, “As long as I refrain from announcing it, then no one is unemployed.”

Coinciding with this announcement, China’s central bank, the People’s Bank of China. Took an unexpected step to stimulate growth by lowering key interest rates for the second time within three months. This action further underscores the country’s commitment to bolstering its economic trajectory.

China’s Economic Challenges Intensify Amid Export Decline and Property Market Crisis

A series of setbacks cast a shadow over China’s economic landscape as it grapples. With a substantial drop in exports and the onset of deflation. Julian Evans-Pritchard of Capital Economics highlights the urgent need for heightened policy support to avert the looming threat of recession.

Furthermore, the turmoil in China’s property market has raised significant alarms. Country Garden, the nation’s largest private real estate developer, recently issued a somber warning. Projecting potential losses of up to $7.6 billion (£6 billion) for the first half of the year.

The real estate sector faced a seismic shift when new regulations curbing borrowing by major developers were implemented in 2020. The subsequent year witnessed a dramatic default by Chinese property giant Evergrande on its substantial debts. Last month, Evergrande disclosed a staggering total loss of 581.9 billion. Yuan ($81.1 billion; £62 billion) over the past two years.

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