China's Youth Unemployment: 100 Million Without Prospects

Summary

The China correspondent Matthias Kamp reports on the dramatic labor market crisis for young people in China. Officially, 17 percent of youth are unemployed, with unofficial estimates suggesting up to 40 percent. The 25-year-old Ren Qianlong embodies this problem: despite graduating with distinction in economics, he cannot find a job in his field. The reasons lie in the weakening economy, the focus on technology professionals, and the massive overproduction of university graduates. Experts warn of a "lost generation" of nearly 100 million young people.

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Detailed Summary

The Swiss radio program "Akzent" documents the difficult situation of young people in the Chinese labor market. At the center is the story of Ren Qianlong, a 25-year-old economics graduate who specialized in human resources and completed his studies with distinction. Despite these good qualifications, he cannot find a permanent job in his field and gets by with part-time jobs that bring him only 250 to 300 yuan per month (about 35 to 40 Swiss francs) – far too little to live on.

Matthias Kamp, correspondent for China, explains that Ren Qianlong's problem is symptomatic for millions of young Chinese. The official youth unemployment rate was 17 percent in October 2025, but labor market experts estimate unofficial rates at up to 40 percent. The reason for the changed calculation method: the government no longer counts students who remain at university and do internships or additional courses as unemployed.

The main cause of this crisis is China's persistent economic weakness. After the end of the zero-Covid policy at the end of 2022, the economy initially recovered briefly, but has been declining since. Both state-owned and private enterprises are making lower profits because domestic demand is weak. As a result, they are hiring less personnel. At the same time, consumers are holding onto their money and spending less, which further strains corporate balance sheets.

A structural problem is intensifying the crisis further: the number of university graduates has increased massively in recent years – by several hundred thousand annually. This is the result of government policy that massively expanded universities to modernize the economy. Families send their children exclusively to universities; other forms of education are not socially acceptable. The result: more and more well-educated people are competing for a shrinking labor market.

The focus of the Chinese government is making the problem worse. Under the leadership of Xi Jinping, the government has set the goal of making China the world leader in all new technologies and to overtake the USA. To this end, the government is pumping billions into robotics, artificial intelligence, and software. This means that particularly state-owned technology companies from the Wuhan region – such as at the job fair where Ren Qianlong participated – are exclusively seeking engineers and tech specialists. Graduates like Ren, who studied economics, do not fit the profile. Even the human resources departments of these technology companies are no longer being staffed because the focus is entirely on technology.

Ren Qianlong's fate reveals another psychological problem: the young man blames himself for his failures. He is ashamed of his economics degree and believes he cannot provide real added value to a company. These self-accusations are typical for many job seekers in this situation.

The future outlook is bleak. Since the end of the Covid policy, about 74 million people have completed their education and either have not found a job matching their qualifications or are unemployed. In 2026, another 26 million young people will complete their education and enter the labor market. If the economy does not recover quickly and sustainably, experts warn of a "lost generation" of nearly 100 million people.

The government is aware of the problem. At the central economic work conference in September 2025, the final document explicitly stated: "We must take care of young people, we must create jobs for the younger generation." However, the government itself is unclear on how to implement this concretely.

Frustration among young people is growing. Many are discouraged and frustrated. Some are dropping out of the labor market entirely, moving to rural areas and pursuing their hobbies – an option only wealthier families with savings can afford. For most young people, there is no state support: formally, unemployment insurance exists, but even long-term employees receive little from it. For young people with no previous work experience, there is effectively no safety net.

Ren Qianlong will not give up. A life as a dropout is not an option for him. He wants to continue searching and find a job that matches his qualifications. However, Kamp expresses doubts about whether that will work. During his travels through the country, he observes that prospects are getting worse, and frustration and hopelessness are increasing.

Key Messages

• The official youth unemployment rate in China is 17 percent, with unofficial estimates ranging up to 40 percent.
• China's economic weakness is the main reason: companies are making lower profits, hiring less staff, and domestic consumption is weak.
• The massive overproduction of university graduates (several hundred thousand more annually) is meeting a shrinking labor market.
• The government's focus on technology under Xi Jinping means that mainly engineers and tech specialists are being sought; other fields of study have little chance.
• Since the end of the Covid policy, 74 million people have not found a job matching their qualifications; another 26 million will be added in 2026.
• Experts warn of a "lost generation" of nearly 100 million young people.
• The psychological burden is enormous: frustration and hopelessness are increasing; some job seekers blame themselves.
• State support is minimal; there is practically no unemployment insurance for young people without work experience.
• The government recognizes the problem but has not developed concrete solutions.

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