Chinese Economy Sees Surge in Retail Sales, But High Levels of Youth Unemployment Remain a Cause for Concern

China’s economy has seen a surge in retail sales in the first quarter of 2023, with a 10.6% increase in March from the same period last year. This growth was mainly driven by consumer spending after the end of three years of pandemic restrictions.

However, private investment has remained stagnant and youth unemployment has reached a record high. The urban unemployment rate for people aged 16 to 24 has risen steadily since January, reaching 21.3% in June. This is four times the overall jobless figure and is the second highest level on record.

In response to this, Chinese officials have announced that they will temporarily stop publishing the youth unemployment rate, saying that the way it is calculated needs refinement. Fu Linghui, a spokesperson for the National Bureau of Statistics, said at a news conference in Beijing that the employment situation among college graduates in China is “generally stable”.

The Chinese economy is the world’s second largest after the US, and the country is still recovering from the effects of the pandemic. The surge in retail sales in the first quarter of 2023 is a positive sign, but the high levels of youth unemployment remain a cause for concern. It is hoped that the refinement of the way the youth unemployment rate is calculated will help to address this issue.