Beijing: China's youth unemployment rate climbed to 17.1% in July, marking the highest level recorded this year, according to official figures from the National Bureau of Statistics (NBS). This increase follows a rate of 13.2% in June, reflecting a growing challenge in the job market for young people aged 16 to 24. Notably, the NBS recently adjusted its methodology to exclude students from these calculations.

The surge in youth unemployment adds to the array of difficulties facing China, the world's second-largest economy, which is also grappling with a heavily indebted property sector and escalating trade tensions with Western countries.

Previously, youth unemployment had peaked at 21.3% in June of the previous year, before the Chinese authorities suspended the publication of these figures and later revised the calculation method. For those aged 25 to 29, the unemployment rate slightly increased to 6.5% in July from 6.4% in June. The overall urban unemployment rate stood at 5.2% last month.

Despite these figures, the data presents only a partial view of China's employment situation, as it focuses solely on urban areas. Addressing youth unemployment has been identified as a "top priority" by President Xi Jinping, especially after 11.8 million students graduated from university in June, intensifying competition in an already challenging job market.

The release of these unemployment figures coincides with other disappointing economic data, including sluggish industrial production, despite government efforts to stimulate growth.