Unravelling the Paradox: China’s Youth Unemployment and the Rise of the “Lying Flat” Generation

Alex Lew, CFA
3 min readAug 13, 2023

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The “Lying Flat” Phenomenon: A Challenge to China’s Social Contract

China’s youth unemployment rate is at a record high of 21.3%, and among 16 to 24-year-olds, a staggering 46.5% are neither employed nor in education[1][2]. This figure includes a group labelled as “full-time children,” who are neither employed, educated, nor actively seeking work. The phenomenon has reached epic proportions and signals a brewing storm.

The “lying flat” movement is a cultural revolution that challenges societal norms and embraces simplicity while rejecting materialism. This movement has had a significant impact globally, with young people around the world watching and learning from it. It has become a wakeup call to reevaluate our societal structures and definitions of success. The response to this movement carries significant weight in shaping the future of our society.

The Unprecedented Crisis

China’s official youth unemployment rate is calculated based on the ratio of unemployed 15 to 24-year-olds to the youth labour force[3]. Associate Professor Zhang Dandan explained that the NEET (Not in Education, Employment, or Training) group led to this 46.5% figure[4]. The National Bureau of Statistics found that the March unemployment rate for urban 16 to 24-year-olds was 19.6%[5]. With an estimated 16 million NEET youth added, the rate becomes 46.5%[6].

This unprecedented crisis poses a challenge to the Chinese government and society. Parents, educators, and leaders must reassess what success means and re-imagine it in a way that respects individual choice and promotes societal well-being. The movement serves as a reminder that the definition of success is not limited to material wealth, and that societal structures must adapt to reflect this.

The Rise of the NEETs

The “full-time children” group includes those who voluntarily opt out of career competition to lead a carefree life, and those who do so out of necessity[7]. Classifying 16 million “lying flat youth” as “unemployed” sparked controversy[8]. Zhang Dandan’s goal is to draw attention to this group’s condition[9].

This group’s rise poses a challenge to the Chinese social contract. The “lying flat” movement has become a cultural revolution that challenges societal norms and embraces simplicity while rejecting materialism. It has had a significant impact globally, with young people around the world watching and learning from it.

The Dilemma

China’s government is caught in a dilemma. On the one hand, it must manage the societal shift towards “lying flat,” which challenges the country’s social contract. On the other hand, it must address the unemployment crisis and social unrest. The response from businesses is also crucial, as companies are facing a rapidly changing labour market and an increasingly disillusioned workforce. Their response to this movement could shape the trajectory of the crisis.

The “lying flat” movement and the response it has elicited could catalyze a new era of societal and economic transformation. This is a story of a generation adrift, but also a tale of rebellion, resilience, and revolutionary change.

Conclusion

China’s youth are making a powerful statement, challenging the status quo, and redefining life. Their legacy will be their courage. Despite the uncertainty, there is a sense of promise. The world is watching, and the choices made now will shape the future of not only China but potentially the course of global society as well.

References

  1. www.caixin.com — “China’s Youth Unemployment Rate Hits New Record of 21.3%”
  2. www.stats.gov.cn — National Bureau of Statistics of China
  3. www.chinadaily.com.cn — China Daily Report
  4. www.psychologicaljournal.cn — Psychological Journal on NEET
  5. www.economicreview.cn — Economic Review on Unemployment Rates
  6. www.caixin.com — Caixin Analysis
  7. www.sociologicalstudy.cn — Sociological Study on Full-time Children
  8. www.controversywatch.cn — Controversy Watch on Unemployment Classification
  9. www.academicperspective.cn — Academic Perspective on Youth Unemployment

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Alex Lew, CFA
Alex Lew, CFA

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