China has halted the publication of data concerning youth unemployment, which had previously been regarded as a crucial indicator of the country's economic slowdown. This decision, as a government spokesperson puts it, is attributed to shifts in China's economy and society. The jobless figures for individuals aged 16 to 24 in urban areas reached a historic peak of over 20% in June, BBC reports.
This move coincides with China's efforts to navigate its post-pandemic economic recovery, which is showing signs of deceleration. The official unemployment rate in China, across all age groups, rose to 5.3% in July. While the decision to temporarily suspend the release of youth unemployment data has been made, no specific timeframe for the suspension has been provided.
The National Bureau of Statistics spokesperson, Fu Linghui, highlighted the necessity to reevaluate the methodology for calculating youth unemployment due to the evolving economic landscape and society. Fu acknowledged that the surge in the number of students aged 16 to 24 might have an impact on unemployment figures, although it's important to note that China does not categorize students as unemployed.
The practice of disclosing youth unemployment figures began in 2018, yet data concerning the employment status of young people in rural regions is currently not made public. The suspension of these figures has sparked discussion on the Chinese social media platform Weibo. Users expressed skepticism about the effectiveness of such a measure in addressing underlying economic challenges.
The decision comes amid broader concerns about China's economic trajectory. The country's post-pandemic recovery is showing signs of tapering off, marked by a recent drop in exports and a deflationary environment where prices are declining. The property sector is a particular area of concern, with China's largest private real estate developer, Country Garden, warning of substantial potential losses.
In a bid to stimulate growth, the People's Bank of China took the unexpected step of reducing key interest rates for the second time in three months. Analysts warn that without substantial policy support, there's a significant risk of the economy slipping into a recession.
This is especially pertinent given the challenges posed by China's crisis-hit property market. Last year, stringent borrowing regulations for major developers were implemented, and this has had a significant impact on China's real estate industry, carrying Evergrande down as well.
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