Increasing Unemployment among youth threatens China’s Economic Stabi

Beijing: While the outbreak of the Coronavirus pandemic and the lockdowns imposed given the pandemic are adding to the discontent of the Chinese population, a more disturbing report has surfaced. It has been exposed that there is a huge growth in unemployment among the youth in the urban regions. The Chinese National Bureau of Statistics informed that unemployment has risen to 16% among urban youth. The Chinese agencies have expressed a concern that the Chinese economic stability could come under threat if this trend of increasing unemployment continues.

Last year, China raised a baton of action against certain big companies in the technology sector. The other industry sectors also suffered the hit along with the technology sector. At the same time, the housing sector in China also received major jolts. Many factories had to be closed due to the energy crisis developing in the country. While China is just emerging from these crises, the fresh Coronavirus outbreak has delivered more jolts. Given the fresh outbreak, lockdowns had to be imposed in many Chinese cities. These even include the leading city of Shanghai.

Effects of the action against the technology sector, energy crisis and Coronavirus lockdown are becoming apparent in the Chinese economy. The action against the technology sector has resulted in the loss of thousands of job opportunities. The new employment generation from industry has also declined as the energy crisis and lockdowns have resulted in the closure of many industries. At the same time, the number of students passing out of Chinese universities is consistently increasing.

The number of graduates in China is expected to reach 10 million in 2022. Whereas, the number of job aspirants is likely to reach 15 million. China had claimed to generate more than 11 million jobs per year in the last decade. But in the last two years, this figure shows a decline, resulting in an increase in unemployment in the urban region. A few days ago, Chinese Prime Minister Li Keqiang had to appeal to the local administrations and other sectors to make special efforts for employment generation.

Considering the spectacular claims made by the Chinese leadership, the appeal made by Keqiang draws attention. The Chinese communist regime is completing 100 years in this year. Analysts have expressed concerns that if the unemployment keeps increasing, the ruling Chinese communist party may face rising discontent during the centenary year.