China’s Youth Save, Not Spend, Amid Job and Housing Worries

Published: 12 November 2025 | The English Chronicle Desk | The English Chronicle Online

China is facing a growing economic challenge as its youth, who could be key drivers of domestic consumption, are increasingly choosing to save rather than spend. Despite government efforts to boost household consumption for the good of the economy, many young people remain cautious amid uncertain job prospects and a worsening property market.

Youth unemployment in China has hovered just below 20%, and even those with jobs are concerned about job security. Rising living costs and an ongoing property crisis have made home ownership appear unattainable, particularly in large cities. These pressures have led many young people to adopt frugal lifestyles, with social media awash with tips on how to survive on minimal expenditure.

Influencers like the 24-year-old Zhang, known online as Small Grain of Rice, promote minimalist living. Her videos demonstrate low-cost personal care routines and highlight durable, cost-effective items, while she also shares practical advice to help followers save money and avoid “consumption traps.” Her content reaches nearly 100,000 followers on Xiaohongshu, with companies paying her to feature select products.

Budget-friendly meals are another trend among China’s youth. A 29-year-old known as Little Grass Floating In Beijing shares videos showing how he manages two meals for just over $1 (76p). Working in online sales, he says his frugal approach has allowed him to save over $180,000 in six years, despite earning modest wages and lacking influential networks.

Economists and analysts say that China’s consumption patterns, particularly among younger generations, pose a long-term challenge. Unlike the United States, where household debt is common, Chinese consumers tend to save more, and economic uncertainty reinforces this tendency. Household consumption accounts for roughly 39% of China’s GDP, compared with around 60% in many developed economies.

Recent graduates often face a mismatch between their skills and available job opportunities, particularly as China transitions toward a high-tech economy. Many end up taking low-paid or unrelated jobs despite holding advanced degrees, highlighting the difficulties of navigating a labour market shaped by automation, robotics, and AI.

Economists including George Magnus and Helena Lofgren note that China’s export-driven and investment-heavy economy struggles to stimulate domestic spending. Deflationary pressures mean that consumers often delay purchases in hopes of lower prices, slowing overall economic growth. While the government has attempted to incentivize spending through programs for home appliances, car replacements, and other items, these measures have had limited success.

Cultural attitudes also play a role. Frugality has been ingrained across generations in China, with many young people inheriting habits of careful spending from their elders. As Zhang explains, “For Chinese people to be economical is in their bones,” reflecting a long-standing tradition of thrift and cautious consumption.

As China grapples with the twin pressures of encouraging domestic consumption and managing youth economic insecurity, the next generation of consumers will play a crucial role in shaping the country’s economic future. How the government and businesses respond to these challenges may determine whether China can sustain healthy growth in the years ahead.