China, jump in youth unemployment: 17.1% in July

China's youth unemployment rate reached 17.1 per cent in July, the highest level since the beginning of the year, according to official data. The unemployment rate among 16 to 24-year-olds, which no longer includes students after Beijing changed the formula used to calculate unemployment, was 13.2 per cent in June, according to data published by the National Bureau of Statistics

The continuing property crisis and weak consumption held back China's economic recovery in July, according to data released Thursday by the National Bureau of Statistics. Unemployment rose for the first time since February to 5.2 per cent, up from 5 per cent in June. Industrial output also increased more slowly than the previous month, rising 5.1 per cent year-on-year in July, up from 5.3 per cent in June. Retail sales rose slightly above analysts' expectations, increasing 2.7 % year-on-year in July, up from 2 % in June.

Statistics Bureau spokesman Lui Aia said that the consumption recovery will be further consolidated given recent government policies aimed at boosting consumer spending. Real estate investment fell 10.2% year-on-year in the first seven months of the year, after falling 10.1% in the January-June period. A prolonged slump in China's real estate market, which began after Beijing began cracking down on excessive lending by developers, triggered a chain reaction that sent home sales and prices plummeting and affected many other sectors of the economy, such as construction, building materials and home appliances.

China has increased financial incentives to encourage consumers to scrap their old vehicles and buy new ones, according to a circular issued on Friday. Subsidies for fuel-efficient passenger vehicle trade-ins have doubled from 10,000 uan (US$1,399) - a figure set in an April document - to 20,000 uan, according to the circular, circulated by the Ministry of Commerce and six other government departments. Subsidies for fuel-powered passenger vehicle trade-ins were increased from 7,000 to 15,000 yuan. The new policy applies to all subsidy applications submitted between 24 April this year and 10 January 2025.