China Unemployment Rises to 5.3% as Graduates Enter Job Market

China's urban unemployment rate increased to 5.3% in August 2026, up 0.1 percentage points from July, according to the latest data from the National Bureau of Statistics.

The increase comes during one of the most important periods of the year for China's labour market, as a new wave of university graduates begins looking for work.

Why did unemployment rise?

China's statistics agency described the increase as largely seasonal. Large numbers of graduates traditionally enter the labour market during the summer, temporarily increasing the number of people actively searching for jobs.

The unemployment rate among people aged 30 to 59 remained at 3.9%, unchanged from both the previous month and the same period a year earlier.

This suggests that the August increase was not evenly distributed across the labour market and that younger job seekers entering the workforce played an important role in the monthly rise.

Software and IT employment is still growing

There were also positive signals within the data.

The National Bureau of Statistics said employment in information transmission, software and information technology services increased noticeably. Employment in accommodation and catering also continued to expand, while manufacturing employment remained broadly stable.

A stable headline rate — but pressure on new entrants

Across the first eight months of 2026, China's urban surveyed unemployment rate averaged 5.2%, the same level as during the corresponding period of 2025.

The unemployment rate in 31 major cities stood at 5.3% in August, also 0.1 percentage points higher than in July.

For employers and job seekers, the figures show two different sides of China's labour market: overall employment conditions remain relatively stable, while graduates and other new entrants face a more competitive environment as they search for their first roles.