China suspends report on youth unemployment as joblessness crosses 21%
What's the story
China has decided to suspend the release of the youth unemployment rates, which have increased every month this year. This move follows a record-high youth unemployment rate of 21.3% among 16- to 24-year-olds in June. The suspension coincides with weak economic indicators for July, which have raised concerns about China's ability to achieve its 5% growth target for the year.
Details
China wants to 'improve and optimize' survey statistics
China's National Bureau of Statistics said it has suspended age-group-specific unemployment data starting this month. It said the country has to "further improve and optimize labor force survey statistics." However, the decision to not release the widely-popular youth unemployment data adds to the concerns expressed by investors and companies about increasing government control of information.
Unemployment
Youth unemployment has doubled in 4 years
Youth unemployment has been a major issue in China for a while. It has doubled in the last four years. The country has been struggling due to falling exports, dwindling consumer confidence, and deflation. In China, there is a gap between labor demand and supply. With more people graduating every year, there is also a severe mismatch between available jobs and desired jobs.