06:48 AM EDT, 07/02/2024 (MT Newswires) -- China's youth unemployment rate is ANZ Bank's preferred indicator of the health of the country's labor market, as the headline jobless rate underestimates unemployment.

The bank's analysis suggests that youth unemployment is due to structural issues.

Historical data from Japan and the United States suggests the labor market will recover very slowly even after the property crisis is resolved, stated ANZ.

In the digital era, young people are key to China's consumption, wrote the bank in a note to clients.

As the prospect of wage growth for this cohort is limited, private consumption will remain constrained, it added.