Labour Day Highlights Economic Concerns for Young People in China

Shifting Consumption Patterns Among Young Chinese

The recent Labour Day holiday has shed light on the consumer behavior of young individuals in China, especially among the 16-24 age group and the 25-29 age group. According to the 2024 Youth Lifestyles Report released by China Newsweek, a staggering 80 percent of respondents have no intentions of purchasing property this year.

Economic Constraints Impacting Spending

• Income Stability: Nearly 40 percent of young individuals expect their disposable income to remain unchanged or decrease.
• Shift to Essentials: Spending is now focused on essentials, with 37.1 percent of the survey participants prioritizing food.
• Minimal Savings: A shocking 17.6 percent have no savings, while 55.5 percent possess less than 200,000 yuan.

Travel Preferences in a Tight Economy

A notable trend during Labour Day indicated that young Chinese are opting for niche domestic travel destinations. Reports reveal an astonishing 151 percent increase in ticket orders to scenic spots during the holiday.

Mentality Shift Towards Necessary Spending

The primary consideration among consumers is whether a purchase is necessary, with 83.9 percent prioritizing needs over wants. This is compounded by fears of economic instability and job security.

Experts, including David Wong from the Department of Management at Hang Seng University of Hong Kong, suggest that without significant changes, reviving domestic demand will continue to be a challenge as young people seek to secure financial stability before making large investments.