Beijing: China’s young people are facing growing difficulties finding stable employment as a record number of graduates enter a labour market where demand for entry-level workers remains under pressure.

The latest official figures show the urban unemployment rate for people aged 16 to 24, excluding students, reached 18.9 per cent in August, up from 17.9 per cent in July. The figure is the highest since the current methodology was introduced and matches the August 2025 level.

Record graduate numbers add to the pressure

An estimated 12.7 million university students graduated this year, around 500,000 more than in 2025 and nearly twice the number recorded a decade ago. The influx has added pressure to a job market already affected by weaker domestic demand and difficulties in sectors that previously employed large numbers of young workers.

The rise is partly seasonal, with unemployment typically increasing as graduates enter the workforce. China’s National Bureau of Statistics has also said the broader employment situation remains generally stable, with surveyed urban unemployment averaging 5.2 per cent during the first eight months of 2026.

Young people adapt to a changing job market

The employment squeeze is also changing how some young Chinese approach work. Reports have highlighted graduates taking temporary or lower-paid jobs, delaying employment, pursuing further education or withdrawing from the conventional job hunt.

Some have embraced the idea of “lying flat”, while others have turned to informal arrangements such as staying with parents or using shared spaces that recreate an office environment while they search for employment.

At the same time, sectors such as technology, private education and entertainment have faced job reductions, while automation and artificial intelligence are adding further uncertainty around some entry-level roles.

The government has announced measures aimed at supporting graduate employment, including additional community-level positions and a broader target of creating more than 12 million urban jobs in 2026.