On June 15, China’s National Bureau of Statistics website released economic data. In most areas, the economy is down, and the youth unemployment rate has hit another record.
It’s worth noting that the jobless rate in urban areas was 5.9% in May. According to the survey, the local household unemployment rate was 5.5%. According to the urban survey, the unemployment rate in 31 major cities was 6.9%. The unemployment rate for people aged 25 to 59 was 5.1%.
The unemployment rate among young people is the highest. The unemployment rate among 16-24-year-olds has risen to 18.4 percent, exceeding the previous 18.2 percent in April and setting a new record.
Besides, the data also showed that in May, the manufacturing purchasing managers’ index (PMI) was 49.6, still below the contraction level of 50. The national service industry production index declined 5.1% year-on-year, while the service business activity index was 47.1%.
The retail sales of social consumer goods were 500 billion dollars, down 6.7% year-on-year.
The survey data shows the impact of the “zero-Covid” policy. Strict lockdowns hurt the economy and leave vast numbers of people with low consumption and unemployment.
According to China Caixin.com, Lu Feng, an economics professor at the National School of Development of Peking University, May 18, said the youth unemployment rate in China surpassed that of Europe and the United States in April. While youth unemployment in the United States and Europe has been declining since mid-2021, it has increased in China since October 2021.
Lu Feng said he was surprised to see the youth unemployment rate in Europe and some new economies reaching 20% a few years ago but never imagined that China could reach this level.