China, Asia’s largest and world’s second largest economy, is in trouble these days. China, which played the role of engine for the global economy for a long time, was troubled by the challenge of deflation earlier. The way to overcome deflation has not yet been found that unemployment has raised concerns. In recent times, unemployment is creating a new record every month. Figures for the month of June show that in China, about 21 out of every 100 youth aged 16 to 24 do not have work. The unemployment rate in this age group increased to 21.3 percent during the month of June.
Youth unemployment at new record
Unemployment among 16 to 24-year-olds is still a record. is at a high level. This shows that such youth are having trouble getting jobs, who either do not have experience or have less. It means that it has become difficult for the youth of China to find their first or second or third job. Looking back this year, we find that the unemployment rate in this age group has been increasing every month since January.
The government stopped publishing the data
Recently In China, the government also had to face criticism due to unemployment. China has stopped publishing the report showing youth unemployment statistics due to wildly rising unemployment. It is being told that the government has taken this step to hide the embarrassment after the youth unemployment rate reached a record level in June.
The crisis of deflation before unemployment
This crisis of youth unemployment has come at a time when China is facing the problem of deflation in an unexpected way. The inflation rate in China came down to 0.3 percent in the month of July. The condition of such a fall in inflation is called deflation. The problem with deflation is that its main cause is a sudden weakening of demand. The prices are decreasing rapidly and this is the reason that the inflation rate has reached very close to zero. In such a situation, the Chinese government is considering various measures to create demand in the market. If the government does not overcome the challenge of deflation soon, then it can have a very bad effect on China’s economy and there can be a huge decline in its economic growth rate.
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