China: China has announced that it will suspend the release of youth unemployment figures as its central bank cuts a key interest rate to boost flagging growth. In June 2023, China’s jobless rate for 16 to 24-year-olds in urban areas hit a record high of more than 20 percent.
The National Bureau of Statistics (NBS) stated that it would no longer release age group-specific unemployment data starting this month, citing the need to “further improve and optimise labour force survey statistics”.
“Starting in August, the release of urban unemployment rates for youth and other age groups across the country will be suspended,” NBS spokesperson Mr. Fu Linghui said at a press conference.
Recently,the central bank cut the medium-term lending facility (MLF) rate, which means the interest for one-year loans to financial institutions, from 2.65 percent to 2.5 percent. A decrease in the MLF rate leads to reduced financing costs for commercial banks, encouraging them to increase lending and potentially boosting domestic consumption.
The decision to stop the release of youth unemployment data came as Beijing released a series of weak economic indicators for July.
“Retail sales, a key gauge of consumption, grew 2.5 percent year-on-year in July, down from 3.1 percent in June and falling short of analyst expectations,” the NBS noted.
Chinese leaders have sought to boost domestic consumption in recent weeks, with the State Council last month releasing a 20-point plan to encourage citizens to spend more in sectors including vehicles, tourism, and home appliances. The country’s top leaders have warned that the economy faces “new difficulties and challenges” as well as “hidden dangers in key areas.”
The NBS statement added that “overall, unemployment rose to 5.3 percent in July compared with 5.2 percent in June. Industrial production grew 3.7 percent in July from a year ago, down from 4.4 percent in June.”
The recent data further suggested that China may struggle to achieve the 5 percent growth target set for the year. According to official reports, the world’s second-largest economy grew just 0.8 percent between the first and second quarters of 2023.
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