Youth unemployment hits record in China
In China, industrial production and retail sales rose below expectations in April, while youth unemployment hit a record high.
The National Statistics Office (UIB) announced the data set for industrial production, retail sales, fixed capital investment and unemployment figures for April and the first four months in the country.
Consequently, the unemployment rate in urban areas decreased 0.1 percentage points to 5.2 in April compared to the previous month, while the youth population aged 16-24 increased 0.8 percentage points to 20.4 percent.
THE HIGHEST LEVEL SINCE THE 1990S
Despite the general decline in unemployment, youth unemployment has reached its highest level since the 1990s, surpassing the record of 19.9 percent recorded in July of last year.
The fact that youth unemployment, which has risen since the start of the Covid-19 epidemic, remains high is interpreted as a sign of continued fragility in the economic recovery.
Data for April reveal that the economy had difficulties maintaining its growth rate in the first quarter of this year, after the recession in the last quarter of last year.
4 PERCENT INCREASE IN INDUSTRIAL PRODUCTION
According to UIB data, industrial production, which calculates the output of industrial enterprises with an annual turnover of more than 20 million yuan (about 2.9 million U.S. dollars), rose 5.6 percent year-on-year in April. , surpassing the 3.9 percent increase in March. It did not reach the expected increase of 9.7.
Industrial production increased 3.9 percent compared to the previous month.
Retail sales, which are considered the measure of consumption, fell 7.8 percent from the previous month, despite an 18.4 percent annual increase in April, outpacing March’s 10.3 percent increase.
The low base caused by the lockdown and quarantine measures implemented in the spring of last year due to the Covid-19 outbreak made the annual increase appear high.
Fixed capital investment, including spending on infrastructure, real estate, machinery and equipment, rose 4.7 percent annually in the first four months, but lagged behind the 5.1 percent rise at the end of the first quarter .
In the first four months, industrial investments increased 8.3%, infrastructure investments increased 8.5%, while construction investments decreased 6.2%.
Although it was observed that the 10 percent contraction in real estate investments slowed down in the first four months, it was observed that the effects of the financing problems in the sector continued.
UIB spokesman Fu Linghui said that “international conditions are complex and unfavorable, domestic demand has not reached a sufficient level, and the domestic driving force of economic recovery remains weak.”
Fu stressed that efforts are needed to stabilize youth unemployment and expand youth employment. (AA)