Record influx of university graduates pushes China’s youth unemployment rate to 18.9%

China’s urban youth unemployment rose last month, as a record influx of university graduates struggles to find work in a job market weighed down by weak domestic demand and the growing adoption of artificial intelligence.

The jobless rate for those aged 16 to 24, excluding students, rose to 18.9 per cent in August from 17.9 per cent in July, according to data released by the National Bureau of Statistics on Thursday.

This figure, as well as the identical number from August last year, represents the highest reading since Beijing revised its calculation methodology to exclude students in 2023, following a peak of 21.3 per cent under the old rubric reported in June of that year.

A record 12.7 million university students were estimated to have graduated this summer, entering a labour market already weakened by slowing economic momentum. While the rise in youth unemployment is partly seasonal, anxiety is growing over the threat that the emerging adoption of AI poses to entry-level roles.