china’s Economy Posts 4.5% Growth in First Quarter, But Youth Unemployment Looms
BEIJING – China‘s economy grew 4.5% in the first quarter of 2023, signaling a continued recovery from the disruptions of the COVID-19 pandemic, but a surge in youth unemployment casts a shadow over the positive momentum. The growth rate, announced Tuesday, represents a significant rebound from the 2.2% recorded in the fourth quarter of 2022, though it remains below pre-pandemic levels.
The economic uptick offers a crucial boost to a global economy facing headwinds, yet concerns are mounting over the job market, particularly for young people entering the workforce. A record 11.6 million college graduates are expected to seek employment this year, adding pressure to an already strained system. The situation is further complicated by a cautious growth plan set by the government, targeting a GDP increase of around 5% and job creation for 12 million people.
Recent data reveals a concerning trend of rising unemployment among the youth. The jobless rate for 16- to 24-year-olds reached 19.6% in march, marking the third consecutive month of increases. This figure is the second highest on record, surpassed only by the 19.9% seen in July 2022.
Economists warn that this high rate of youth unemployment indicates “slack in the economy,” according to Yeung, and could worsen as the new wave of graduates enters the job market in June. A faltering in China’s economic momentum would exacerbate the situation.
At last month’s meeting of the National People’s Congress, the government acknowledged the challenges and set a GDP target of around 5% for the year, alongside a goal of creating 12 million jobs. The success of these targets will be critical in navigating the complex economic landscape and addressing the growing concerns surrounding youth unemployment.
