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Explainer | 6 takeaways from China’s economic data in May as youth unemployment hit new high, retail sales slowed
- Jobless rate for the 16-24 age group in China hit a record 20.8 per cent in May, while retail sales fell short of expectations, rising by 12.7 per cent vs 18.4 per cent in April
- China’s central bank also cut the interest rate on its medium-term funding for financial institutions amid efforts to support the slowing economy
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China’s economic growth continued to lose momentum in May amid weak retail sales and industrial production, while youth unemployment rose to yet another record high, according to figures released on Thursday.
“All of the data points so far send consistent signals that the economic momentum is weakening,” said Zhang Zhiwei, chief economist at Pinpoint Asset Management. “To make the economic recovery sustainable, a significant boost from government policies seems necessary.”
1. Youth unemployment rises
The jobless rate among China’s 16-24 age group hit a new high of 20.8 per cent in May, up from 20.4 per cent in April.
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But National Bureau of Statistics spokesman Fu Linghui claimed that “some people have been misunderstanding the overall volume of our numbers”, noting that only 33 million of the 96 million people in the 16-24 age group are currently in a position to be employed, as many are students. And among those 33 million, he said, only about a fifth have been unable to find work.
Meanwhile, the overall urban surveyed jobless rate stood at 5.2 per cent in May, unchanged from April.
2. Retail sales slow
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