Chinese premier predicts ‘grim’ outlook for country’s job market

CHINA’S premier has warned its job market faces a “complicated and grim” outlook as the country’s zero-covid strategy causes trade exports to plunge.

Li Keqiang warned of job losses as Beijing and Shanghai tightened curbs on residents as part of efforts to contain the pandemic.

He instructed government departments and regional authorities to help businesses avoid shedding jobs.

New figures released by China’s National Bureau of Statistics showed joblessness rose to 5.8pc in March, the highest since May 2020.

Mr Li said: “Stabilising employment matters to people’s livelihoods, it is

also a key support for the economy to operate within a reasonable range.”

It came as data showed China saw a further trade slowdown in April as local lockdowns curbed demand, hit production and spurred logistics issues in the world’s second biggest economy.

Export growth slumped to an annual reading of 3.9pc last month, a severe slowdown from 14.7pc in March. It marked the weakest pace of growth since June 2020. Imports were steady, having fallen 0.1pc in March. Both readings were slightly stronger than expected by economists.

Kit Juckes, an analyst at Societe Generale, said the figures “were bad, but not as bad as feared”.

Consultancy Capital Economics said export values were likely to have fallen 3pc over the month, with an “even wider margin” for volumes.

Economist Julian Evans-pritchard said hopes of a rebound in exports as the pandemic eases were “likely to be disappointed”. He said: “Demand for consumer goods will continue to drop back as consumption patterns normalise coming out of the pandemic.”

5.8pc

China’s unemployment rate in March, the highest since May 2020, amid further lockdowns to tackle Covid outbreaks