Unemployment among China's youth hits record 20.8%

Economic rebound loses momentum as industrial output, retail sales growth slows

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BEIJING - China's economy stumbled in May with unemployment among youth jumping to a record 20.8 per cent while industrial output and retail sales growth slowed.

The economic rebound seen earlier in 2023 has lost momentum in the second quarter, prompting China's central bank this week to cut some key interest rates, with expectations of more to come.

The labour market remained weak amid broad-based economic fragility.

The unemployment rate for Chinese between the ages of 16 and 24 rose to 20.8 per cent, up from what was already a record 20.4 per cent in April, the National Bureau of Statistics (NBS) said.

Overall urban unemployment remained at 5.2 per cent, it said.

Industrial output grew 3.5 per cent in May from a year earlier, slower than the 5.6 per cent expansion in April and slightly below a 3.6 per cent increase expected by analysts in a Reuters poll, as manufacturers struggle with weak demand both at home and abroad.