China releases economic data - but missing set of figures on youth unemployment will spark concern

There was no indication beforehand that today's batch of economic information would differ in content from previous months; in fact, the expected figures for retail sales, industrial production, and employment were all present.

However, there was a noticeable absence of a particular set of data, which had caught the attention of many individuals closely monitoring the situation.

In reality, China declared today that it will refrain from disclosing the figures pertaining to the unemployment rate among young individuals (those aged 16 to 24) in the foreseeable future.

This is a significant acknowledgment as these are the precise statistics that have been skyrocketing in the past few months, achieving unprecedented levels of 21.3% in June, almost multiplying since the beginning of 2019.

The Chinese Bureau for National Statistics has acknowledged that some difficulties exist in the data that require resolution. They explained that the evolving economic and social landscape necessitates a reevaluation of their approach.

However, it has caused surprise and aroused worries regarding the openness of information in the second most populous country globally.

Truly, the truth is that the Chinese economy is presently encountering its most substantial obstacle in numerous years.

Check out: Global impact of China's economic troublesConcerns arise over deflation in China as prices sharply declineChina's strict zero-COVID strategy held responsible for the shrinking economy

Only last week, there was news that prices are currently declining in this area, which is causing concerns about deflation. The export and import figures for July showed a drastic decrease compared to the previous year, and growth is unsatisfactory and not meeting expectations across various measures.

Chinese citizens are actively being urged to avoid discussions on deflation.

However, the issue of unemployment among the younger generation presents an even more pressing and urgent problem for this single political entity.

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Truly, the present cohort of youngsters has matured during a period of thriving economy, holding onto the belief that they will surpass their parents in terms of quality of life.

The primary foundation of the prominent Communist Party's 'social contract' with its citizens lies in achieving economic prosperity and stability. Should the younger generation perceive their inability to progress in life, it poses a significant obstacle.

However, the reasons behind this issue are not easily rectifiable. A growing proportion of individuals with university degrees, a population that is becoming more and more educated, but unwilling to pursue rural or manual occupations, and an economy that continues to grapple with the aftermath of the COVID pandemic, have created a situation where there is a clear disparity between the availability of desirable jobs and the number of individuals aspiring to obtain them.

Moreover, it should be noted that these statistics solely pertain to individuals residing in urban regions, excluding those in rural areas. Consequently, the problem might be even more severe than initially perceived.

Many young individuals in China are increasingly experiencing a sense of discomfort and disappointment. They believe they have put in significant effort, and this poses a grave concern for the government, which cannot address this problem by manipulating data.