This brief explores the factors driving rising youth unemployment in the People’s Republic of China (PRC), outlines the country’s policies in response to this challenge, and proposes key areas for further policy attention. The PRC’s labor market was hard-hit by the COVID-19 pandemic and this particularly affected young people. The brief explains how demand- and supply-side factors have contributed to growing youth unemployment and how this has been aggravated by a mismatch between the skills of college graduates and the skills needed by the market. The brief also outlines government efforts to stabilize the labor market—including youth-targeted measures—and identifies short- and long-term actions to create more jobs for young people.