Communist China experiencing record-high levels of unemployment benefit payments and youth unemployment

On August 24th, International Media reported that the Communist Party of China (CPC) job market remained weak. In Communist China, the spending on unemployment insurance benefits reached a record high in June and the rate of youth unemployment reaches a historic height in July.

Statistics showed that compared to a year earlier, payments out of the Communist Party’s unemployment insurance fund increased by 256.6% to 37.19 billion yuan (US$5.42 billion) and it is the highest since January 2013. The fund saw a deficit of $22.74 billion in June, a significant increase from the loss of $4.91 billion in May, as a result of the substantial increase in disbursements.

Official figures also show that in July, the highest level of youth unemployment rate since January 2018 has reached a record of 19.9%.

Economists pointed out that the official numbers do not track youth unemployment in rural areas and that the true unemployment rate is likely to be higher than the official number by a factor of more than two.

Analysts are also commented that the Communist country’s economy is on the verge of disintegrating due mainly to increasing foreign pressure, the Communist Party’s strict zeroing policies, the deteriorating banking systems and real estate issues, as well as other minor factors. The actual level of unemployment is more likely to be higher than the data indicates. If unemployment for young and healthy adults is not resolved, the risk of social unrest may become a reality.

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Translator: OXV Translation Team
Design&editor: HBamboo(昆仑竹)

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