China’s youth unemployment rate dropped to 16.5% in December 2025, offering a bit of breathing room after a tough year for young job seekers. The National Bureau of Statistics released the data on January 22, 2026, showing a 0.4 percentage point decline from November’s 16.9%. This marks the lowest rate in the second half of 2025 and caps four straight months of improvement.
China’s youth unemployment fell to 16.5% in December 2025, marking four consecutive months of improvement after a difficult year.
The turnaround follows a challenging August, when youth unemployment peaked at 18.9%—the highest level since the government changed how it counts these numbers in December 2023. That summer surge coincided with a record 12.2 million university graduates flooding the job market all at once. Think of it like everyone trying to squeeze through the same door at the same time.
The December improvement suggests the job market is gradually absorbing these new workers, though challenges remain. Government officials point to a frustrating mismatch between what students learn and what employers actually need.
Heavy course loads make it hard for students to gain real-world experience through internships, leaving many graduates underprepared despite their degrees. Even those who complete multiple internships still struggle to land jobs.
Weak domestic demand adds another layer of difficulty, making companies hesitant to expand their workforce. Recognizing these pressures, employment took center stage at December’s central economic work conference. Vice Finance Minister Liao Min confirmed job market support would remain a priority through 2026, while Wang Xiaoping, minister of human resources and social security, called stabilizing employment a core political responsibility. The government has emphasized that employment represents a top priority for 2026, which marks the first year of the 15th Five-Year Plan.
The broader labor market shows more stability. Overall urban unemployment held steady at 5.1% in December, and the full-year 2025 average of 5.2% came in below the government’s 5.5% target. Unemployment for workers aged 25 to 29 fell from 7.2% to 6.9%. The unemployment rate for workers aged 30 to 59 stood at 3.9% in December, up 0.1 percentage point from November. Migrant workers fared even better at 4.7%.
These figures apply specifically to people aged 16 to 24, excluding students. While December’s decline offers encouraging signs, officials acknowledge the road ahead requires continued policy support and structural reforms to bridge the gap between education and employment. Policymakers are also encouraging diversified income strategies and vocational training to improve long-term job resilience.
Related Posts
