China’s economy is facing a new challenge: a rise in unemployment.
According to new data released Monday, joblessness in China has increased for the third consecutive month. The official jobless rate, now at 5.3%, has returned to its July level after experiencing increases in December and January, undoing nearly half a year of steady progress.
While the rise in the unemployment rate is concerning, it is just one data point among several economic figures released in Beijing on Monday. Most of these figures were positive: Industrial production saw significant growth in January and February compared to the previous year, and there was a notable increase in investment in factories.
Economists view these data as indicating that the economy is benefiting from modest government stimulus. However, they also emphasize the need for more stimulus to ensure a sustainable recovery.
“Now is not the time for complacency,” said Ting Lu, chief China economist at Nomura in Hong Kong.
The uptick in unemployment is occurring alongside a decline in average working hours in China, a trend often seen as a sign of underemployment, where people are working below their potential.
