China has suspended the publication of data on its soaring youth unemployment rate, citing the need to iron out complexities in the numbers, a move that has raised concerns about data transparency in the world’s second-largest economy.
The National Bureau of Statistics (NBS) did not release the youth jobless rate for people aged 16 to 24 in its July economic activity report, even after youth unemployment hit a record 21.3% in June.
Fu Linghui, a spokesman for the NBS, explained that the labor statistics required “further optimization” and additional research to determine whether students seeking jobs before graduation should be included in the labor statistics.
This decision is seen as part of a broader trend by President Xi Jinping’s government to limit access to sensitive information and control the narrative about the weakening economy. Over the past year, China has restricted access to corporate data, court documents, academic journals, and expert networks, hindering investors’ ability to assess the economic situation.
Economists and experts have expressed concerns about the suspension of youth unemployment data, highlighting its importance as an indicator of the nation’s economic pressures. The omission of this data is believed to be an attempt by authorities to manage negative sentiment and avoid a further confidence crisis.
Despite the suspension, experts suggest that youth unemployment has been on the rise since last year due to a weakening economy and the impact of the crackdown on the technology sector, which was once a lucrative industry for young people. Graduates entering the labor market during the summer months typically contribute to a spike in the youth unemployment rate.
In the absence of specific youth unemployment data, the NBS figures released for July showed a weakening labor market, with the urban jobless rate rising from 5.2% in June to 5.3% in July. This trend coincided with a slowdown in economic activity and an unexpected reduction in a key interest rate by China’s central bank.
Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
