New Delhi, April 9 (NationPress) The issue of youth unemployment is becoming increasingly significant in China, raising concerns about the nation’s so-called “economic miracle.” According to World Bank forecasts, youth unemployment could reach approximately 17.7% by 2025, highlighting a slowdown in job availability as a growing number of university graduates enters the workforce.

Data from 2025 indicated that the unemployment rate among individuals aged 16–24 climbed to 16.9%. Social media platforms spotlighted this crisis when a PhD holder shared his experience of resorting to food delivery jobs, while a gas company publicized job openings for graduates as meter readers, as reported in an article by Eurasia Review.

Every year, millions of fresh graduates enter the job market, escalating competition levels. In 2026, China anticipates over 12 million university graduates, prompting policymakers to explore emerging industries—such as artificial intelligence—for potential job opportunities. However, many graduates find themselves in temporary or underpaid roles that do not align with their qualifications. Others depend on family support or postpone significant life decisions like marriage, home ownership, or starting a family, as noted in the article.

At a recent investor conference, noted economist Gao Shanwen described the current state of China's youth as “lifeless,” remarks that were later removed from the internet by censors. Gao expressed that “China is now populated with vibrant older generations while the youth feel lifeless and the middle-aged are in despair. Young people are economizing to the point of eating noodles under dim lights,” the article quotes.

The article continues to explain that young people in cities from Beijing to Chengdu are experiencing a noticeable drop in purchasing power, ambiguous job prospects, and an economic landscape where government subsidies are increasingly relied upon to boost consumption. For many young Chinese, the once-promised prosperity tied to education and hard work seems to be slipping away.

The Chinese government has introduced consumer subsidy programs aimed at encouraging the replacement of outdated household appliances, vehicles, and digital gadgets. These initiatives, which initiated in 2024, saw significant expansion in 2025 and 2026 as part of a nationwide campaign to rejuvenate weak demand.

“For a generation that once propelled China’s consumption surge, acquiring even reasonably priced appliances without government support is becoming progressively challenging. Subsidies are evolving from mere incentives to essential tools for stabilizing fragile demand,” the article remarks.

The ripple effects of this uncertainty are observable throughout the consumer economy. Despite attempts to stimulate the market, domestic demand remains subdued. Retail sales tend to soar during subsidy promotions, yet economists caution that this trend is not sustainable, driven more by governmental incentives than authentic consumer confidence.

OECD forecasts indicate a decline in China's growth from approximately 5% in 2025 to about 4.4% in 2026, largely due to declining aggregate demand influenced by cautious household spending and elevated savings rates.

Moreover, the property sector—which once served as the cornerstone of household wealth—has deteriorated. Declining housing prices and reduced investment have weakened household financial stability, further discouraging consumer spending. Concurrently, concerns have been raised regarding the authenticity of China's official growth statistics.

Experts have suggested that these figures may be “systematically inflated” due to the methodologies used for calculation, though they argue that it is improbable the central government directly manipulates the data, the article concluded.