The economic uncertainty in China is causing young people to become more cautious with their spending habits. This is because they sense that the economy is not performing well, as reflected in the 11.8% year-on-year growth in RMB deposits by households in the first quarter of 2024. Despite China’s first-quarter GDP growth exceeding expectations, experts predict a continued slowdown with a projected 4.5% growth in 2025 by the International Monetary Fund.
The tight labor market in China is hitting young people particularly hard, with an unemployment rate of 14.2% among youths aged 16 to 24 in May, significantly higher than the national average of 5%. Jia Miao, an assistant professor at NYU Shanghai, explains that some young people are forced to spend less money due to difficulties in finding a job or increasing their income. The average monthly salary earned by undergraduates in 2023 was only 6,050 yuan ($832), just a 1% increase from the previous year.
In addition to these challenges, confidence and consumer spending among the youth have decreased. It may take years of economic growth before they feel comfortable to spend more freely. However, despite these challenges, young people in China continue to be resilient and adaptable, finding new ways to make ends meet and build their future in this rapidly changing economy.
