China jobs: rise in youth unemployment belies surprising economic growth, as ‘weak confidence remains’
- The jobless rate among those aged 16-24 climbed to 19.6 per cent in March, but the overall unemployment rate dipped slightly to 5.3 per cent
- Analysts say the lack of a strong labour market makes China’s consumers hesitant to spend, and this ‘chicken-and-egg situation’ means organic job growth will be slow
It also reflects how authorities must strike a balance when rolling out supportive policies to get China back on its feet following three difficult years of lockdowns and shutdowns.
The surveyed jobless rate for 16- to 24-year-olds rose to 19.6 per cent in March from 18.1 per cent a month earlier, the National Bureau of Statistics (NBS) said on Tuesday.
And analysts warn that it will still take many businesses some time to shake off market uncertainties.
“Weak confidence remains the key headwind in the labour market,” said Larry Hu, chief China economist at Macquarie Capital. “Companies are reluctant to hire more workers because consumers are being cautious.”
The youth-unemployment rate typically increases in March due to an influx of jobseekers after the Lunar New Year break, and this year it came with the job market still looking to recover from pandemic shocks, Hu said.