China unemployment rate near pandemic peak

China's unemployment rate increased to 6.1 percent in April, the highest level since the early stages of the Covid-19 pandemic in February 2020. It comes as the world's second largest economy experiences a significant slowdown due to widening lockdowns. 

Retailers and manufacturers were also heavily hit, according to official statistics. In March and April, full or partial lockdowns were implemented in dozens of locations, including a lengthy shutdown of Shanghai's business centre.

Following the greatest outbreaks of the virus since 2020, Chinese Premier Li Keqiang recently called the country's employment condition as "complex and dismal." Nonetheless, the administration hopes to keep the unemployment rate below 5.5 percent for the entire year.

The spike in unemployment occurred as a result of the Chinese economy's lockup.

According to China's National Bureau of Statistics, retail sales fell by 11.1 percent in April from a year earlier, the largest drop since March 2020. That was far worse than the 3.5 percent decrease in March, and it fell short of economists' projections of a 6.1 percent drop. At the same time, industrial production declined 2.9 percent year over year as supply chains were disrupted by steps to stem the spread of the coronavirus.