China Changes Youth Unemployment Measure

After a five-month lapse, China reported youth unemployment data, which looks better because of new metrics. The change raises questions about data integrity and reporting.

According to China’s National Bureau of Statistics, the unemployment rate of people between 16 and 24 years old dropped from a high of 23.1 in June to 14.9 in December. But the rate doesn’t mean more young people are employed. The Bureau now excludes students enrolled in school, even if they’re seeking part-time employment. Reports also will now separate people between 25 and 29 from those between 25 and 59. A record number of college graduates are having a particularly difficult time finding jobs, partly because of restrictions on tech, real estate development, and education fields and because of a slow recovery from the pandemic, which Chinese officials seem reluctant to admit.

The youth data change might not have been as alarming if China hadn’t stopped reported data after that record high in June.

Students might discuss the significance of these changes and compare how China reports jobless data to U.S. methodology (see U.S. Bureau of Labor Statistics). This situation is a good project for students to dig into the data and also analyze, for example, differences between urban and overall rates.

Students also can find or create charts to visualize the change over time. They’ll likely find mostly line charts like the one at right that shows the urban rate over the past two years. As many do, this chart has a truncated Y axis, exaggerating the differences (and yet, one percentage point is a lot of people out of work).