The youth unemployment rate (for those aged 16 to 24) hit a record-high 21.3 percent in June, following which the government announced that it would no longer publish the statistic.  To juice the economy and create jobs, it is pulling the levers it knows best: home-buying incentives and infrastructure investment—the latter of which expected to total $1.8 trillion this year. 

Unfortunately, the increasingly state-dominated property and construction sectors are not only notoriously unproductive, but virtually irrelevant to the prospects of the young and the educated.  Young Chinese look overwhelmingly to the service sector, which employs half the national workforce, for jobs.  And so new stimulus-driven opportunities in fields such as carpentry and bricklaying hold no interest for graduates in areas such as literature and computer science. 

For decades now, the Chinese government has encouraged university enrollment, pushing the number of students in higher education from 22 million in 1990 to 383 million in 2021.  During the pandemic, it pressed even harder, expanding graduate-school capacity.  Master’s-degree candidates rose by 25 percent in 2021.  China’s Ministry of Education estimated that 10.76 million college students would graduate in 2022, 1.67 million more than in 2021—and it expects a further large rise in 2023. 

Meanwhile, the service industry, beaten down by party-ideological policies aimed at controlling the activities and growth of private-sector firms in areas ranging from tech to tutoring, suffered a sharp downturn in 2020.  After showing brief signs of recovery in the first quarter of this year, a broad measure of services activity fell in August to an eight-month low. 

Unsurprisingly, a huge gap has opened between growth in the number of college graduates, the level of which now being far above its pre-pandemic level, and growth in the number of service jobs, the level of which having flattened out during the pandemic and fallen last year. This gap can be seen in the top graphic above.  The bottom graphic shows the difference between year-on-year growth in the number of service jobs and the number of college graduates.  That gap grew enormously in 2022, and, with a record numbers of students taking China’s college-entrance exam this year, looks set to remain wide. 

The message for China’s policymakers is clear: boosting graduate numbers while throttling services and subsidizing building is bad economics and worse social policy.  It will further distort China’s imbalanced economy, and fuel discontent among an age cohort on which China will depend for its future national vitality. 

for a long time government still encouraged university enrollment, so the univercity has a very big students number increase in these thirty years. Because of the controlling activities and growth of private-sector firms, the services activity fell in the lowest.

And with a big number increase about the number of university students, the employment in the service industry has not very big improvement, and this gap will continue to be bigger.

So the message for China's policymakers has the clear purpose: increasing the univercity students number and limiting the jobs in services and building, but this is a bad idea, this policy will bring the awful stuation to China's economic, this will make people feel unhappy.

China's growing youth unemployment crisis. China's youth unemployment rate hit 21.3 % in June, a figure the government has stopped publishing. To address the problem, the government is investing heavily in infrastructure and encouraging people to buy homes, but these measures will not solve all problems. These efforts are aimed at the construction industry and have not helped well-educated young people, who are mainly looking for jobs in the service sector. China still has many well-educated young people without jobs. It is a flaw that the government has not supported the service sector while increasing the number of university graduates. As a result of the government's encouragement of higher education, the number of university graduates has increased significantly, but there is a huge gap between the number of graduates and the number of service jobs. This exacerbates economic imbalances and could fuel social discontent among young Chinese. May have a long-term negative impact on the country's economic and social stability.

China's growing youth unemployment crisis. China's youth unemployment rate hit 21.3 % in June, a figure the government has stopped publishing. To address the problem, the government is investing heavily in infrastructure and encouraging people to buy homes, but these measures will not solve all problems. These efforts are aimed at the construction industry and have not helped well-educated young people, who are mainly looking for jobs in the service sector. China still has many well-educated young people without jobs. It is a flaw that the government has not supported the service sector while increasing the number of university graduates. As a result of the government's encouragement of higher education, the number of university graduates has increased significantly, but there is a huge gap between the number of graduates and the number of service jobs. This exacerbates economic imbalances and could fuel social discontent among young Chinese. May have a long-term negative impact on the country's economic and social stability.

The youth unemployment rate(aged 16 to 24)hit a record high in June this yeas, and the government has stopped publishing figures to stimulate the economy and create jobs through home purchase incentives and infrastructure investment, but young people are focusing more on the service sector. The government has long encouraged college enrollment, and the number of graduates has soared, while the service industry has been affected by the policy, and the activity index has declined, and the growth of the number of jobs has been flat during the epidemic period. Last year, the gap between the number of college graduates and the number of service jobs has widened. The number of students who will take the exam this year is likely to remain the same, suggesting problems with current policies that could distort the economy and stoke discontent among certain age groups.

Because of the number of university students are increase, and as the servieces avtivity fell the number of students taking China‘s college-entrance exam has increased.