Before the Covid pandemic, China's economy had slowed from a period of rapid growth and low unemployment.
The pandemic hit the Chinese economy as factories and businesses closed to control the infection rates. The unemployment rate in urban areas rose to 6.2% in early 2020. Although this figure quickly came down, as of July 2023 the unemployment rate remains relatively high at 5.3%.
Unemployment remains high among younger age groups.
In June 2023, China's jobless rate for 16 to 24 year olds in urban areas hit a record high of more than 21.3%. Figures for young people in rural areas has not been released.
To tackle unemployment and other economic challenges, the CCP is pursuing its “common prosperity” policy and cracking down on monopolistic firms and their anti-consumer practices. They are investing in fixed assets like infrastructure, new technologies to help with carbon neutrality and job creation. For example, in August 2022, the CCP announced a one trillion yuan ($203 billion; £180 billion) plan to boost small businesses, infrastructure and real estate.
The government has put in place measures to help private businesses, such as:
extending policies from the Covid pandemic, including reducing the amount employers pay into social insurance
the 'one million intern' policy, which aims to provide internships for new graduates and unemployed young people
giving subsidies to employers who give contracts of a year or more to new graduates and unemployed young people
refunding social insurance contributions to companies that limit redundancies
