china’s Economy Posts 4.5%โ Growth in First Quarter, But Youth Unemployment Looms
BEIJING – China‘s economy grew 4.5% in the first quarter ofโค 2023, signaling a continued โrecovery from theโ disruptions of โthe COVID-19 pandemic, but aโ surge in youth unemployment casts a shadow over the positive momentum. The growth rate, announced Tuesday, represents a significant reboundโข from โthe 2.2% recorded in the fourth quarterโ of 2022,โค though โit remains below pre-pandemic levels.
The economic uptick โoffers a crucial boost to a global economy facing headwinds, yet concerns are mounting over โคthe job market, particularly for young people entering theโ workforce. A record โข11.6โค million college graduates are expected to seek employment this year, addingโ pressure to an already strained system. The situationโ is furtherโข complicatedโข by a cautious growth plan set by the government, targetingโฃ a GDP increase of around 5% and โjobโ creation for 12 million people.
Recent data reveals a concerning โtrend of rising unemployment amongโฃ the youth. Theโ jobless rateโ for 16- to 24-year-olds reachedโข 19.6% in march, โmarking the third consecutive month of increases. This figure is the second highest on record, surpassedโ only by the 19.9% seen inโ Julyโ 2022.
Economists warn that thisโฃ high rate of youth unemployment indicatesโฃ “slackโค in โthe economy,” according to Yeung, and could worsen as the new โwave of graduates enters the jobโข marketโค in โJune. A โfaltering in China’s economicโฃ momentum would โexacerbateโ the situation.
At last month’s meeting of the โNational People’s Congress,โ the governmentโ acknowledged the challenges and set a GDP target of around 5% for the year,โ alongside a goalโข of creating 12 million jobs. The success of these targets will be critical inโค navigatingโ the โฃcomplex economicโข landscape and addressing the growing concerns surrounding youth unemployment.
