So some slack in the labor market.
From Fortune via Yahoo Finance, April 18:
Youth unemployment in China worsened in March, even as the country’s economy recovers from years of COVID-era isolation, according to economic data the government released Tuesday.
Unemployment among those aged 16 to 24 rose to 19.6% in March, up from 18.1% in both January and February, and inching toward the 19.9% of last July, the highest level since records began in 2018. Youth unemployment was 16% in March 2022.
Joblessness among the young remains “stubbornly high,” says Alicia Garcia-Herrero, chief Asia Pacific economist at investment bank Natixis.
China's worsening youth unemployment situation was an outlier in a report that otherwise showed an improving economy.
The National Bureau of Statistics reported 4.5% GDP growth in the first quarter, beating expectations of 4% from a Bloomberg survey of economists. Retail sales surged 10.6% year-on-year in March, increasing from the 3.5% growth recorded in January and February. Last week, Chinese officials reported a surprising 14.8% surge in exports, driven by electric vehicles and trade with Russia and Southeast Asia. And the overall job market is improving, with urban joblessness of 5.3% in March, down from 5.6% in February.
A rise in youth unemployment is often expected in March as graduates look for jobs again after the Lunar New Year holiday, says Larry Hu, the Macquarie Group’s chief China economist. Yet “weak confidence” will continue to constrain the job market, Hu says. “Companies are reluctant to hire more workers because consumers are cautious. But without a strong labor market, consumers will be hesitant to spend,” he says.
China's industrial production and fixed-asset investment rose at slower rates than expected last month. Slower manufacturing and a weak IT sector may be two forces behind persistent youth unemployment, says Garcia-Herrero.....
....MUCH MORE
"Rural underemployment threatens China’s growth"
Here's hoping Xi and the rest of the Party don't look upon these masses and see cannon fodder.
