Goldman Sachs says jobs mismatch drove up China's youth unemployment
People look for jobs at a fair in Shanghai, China, on May 20, 2023.
Record unemployment among China's young people stems partly from a mismatch between their majors and available jobs, Goldman Sachs analysts said in a report Monday.
Graduates from vocational schools studying education and sports rose by 20% in 2021 compared to 2018 — but the education industry's demand for new hires "weakened meaningfully during the same period," the analysts said.
Regulatory changes wiped out jobs in after-school education in 2021. Around the same time, policymakers cracked down on internet tech companies such as Alibaba and real estate developers.
That "likely contributed to the weakening of labor demand" in information technology, education and property — industries that also tend to hire more young workers, the Goldman analysts said.
Their research found that information technology saw one of the largest increases in graduates between 2018 to 2021.
Source: CNBC
