China’s economy is struggling to produce enough jobs for its educated workforce—a problem that could persist even after Covid-19 curbs are finally lifted
China’s economy is struggling to produce enough jobs for its educated workforce, a problem that could persist even after Covid-19 curbs are finally lifted
Shanghai residents took selfies outside and toasted with champagne as the city emerged from a Covid-19 lockdown that lasted more than two months. But there are economic challenges ahead as China shows no signs of easing its zero-covid strategy. Photo: Qilai Shen/Bloomberg News. The hashtag “Shanghai is back” is lighting up Weibo, China’s Twitter -like microblogging service.
But the scenes of jubilation from Shanghai, and modestly better economic news—factory purchasing managers index readings for May—belie a deeply troubled labor market. Unemployment for the 16-to-24-year-old cohort was 18.2% in April according to China’s statistics bureau, well above the previous recorded high of 16.8% in July and August of 2020. Given that youth unemployment typically peaks in the several months after graduation, that number will probably head even higher this summer.