China records drop in unemployment in the Q1 of 2023

China’s labour market stabilized in the first quarter of 2023, as unemployment plummeted and more jobs created.

Le Aye Hong, spokesman for China’s Ministry of Human Resources and Social Security, said the urban-based unemployment rate fell from 5.6 percent in February to 5.3 percent in March, while the number of new jobs reached 2.97 million.

The International Monetary Fund (IMF) projected China’s economic growth to reach 5.2% intervals during the year, which would create positive impacts on a number of levels.

In this context, Pierre-Olivier Gorencha, economic adviser and director of the International Monetary Fund’s research department, said China’s economy would contribute significantly to global growth this year.

‏On the other hand, China’s consumer price inflation hit 18-month lows and the decline in factory prices accelerated in March as demand continued to weaken, justifying policymakers to take further steps to support an uneven economic recovery.

‏Analysts now believe that consumer price inflation may not reach Beijing’s target levels this year.

‏The CPI rose 0.7% year-on-year, marking the slowest pace since September 2021 and less than 1% in February. The reading fell short of expectations of an increase of 1%.