If anything is likely to prompt further stimulus in China this is probably it. Youth unemployment in China can have unwanted political repercussions for the Chinese Communist Party.
China’s youth unemployment rate in August, according to National Bureau of Statistics (NBS) data released Friday:
- ages 16 to 24, and not in school,18.8%
- from 17.1% in July
Reasons cited include:
- economic slowdown
- restrictive hiring policies
CNBC carry a snippet from HSBC:
- “It’s increasingly hard for young people to find high paying jobs as before, because in the past three years, the high value-added city services sectors which used to absorb many fresh graduates were in sharp contraction, in particular real estate, finance and IT”
