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China to Boost Jobs as Pressure on Economy Intensifies

The official jobless rate hit 5.8% in March, a near two-year high, as strict Covid lockdowns hammer the economy.


China's economy has suffered amid ongoing lockdowns, the government is working to boost job growth.
Covid lockdowns in cities such as Shanghai, seen here, have hammered small businesses far and wide in China. Photo: Reuters.

 

China will use tools including fiscal and monetary policy to support jobs growth as its policymakers strive to stabilize the economy, China’s cabinet said after a regular meeting on Wednesday, state media reported.

China’s economy has suffered amid ongoing lockdowns that have shut factories and kept people at home. The official jobless rate hit 5.8% in March, a near two-year high.

“The new downward pressure on China’s economy increased further in April due to the larger than expected impact from a new round of the pandemic and changes in the international situation,” the cabinet said.

 

Also see: China’s Politburo Vows to Support Economy, Defeat Covid-19

 

Price stability, grain output and goods supplies will be ensured, the cabinet said.

An additional 50 billion yuan ($7.45 billion) in renewable energy subsidies will be allocated for central-government-backed power firms, it added.

China will also channel more private funds into infrastructure projects, using real estate investment trusts (REITs), the cabinet said.

The China Securities Regulatory Commission (CSRC) said in a separate statement that it would launch a special corporate financing scheme to support the economy. The scheme is funded by state-owned China Securities Finance Corp, and will support private firms with good prospects and competitive technology, the CSRC said.

  • Reuters, with editing by Neal McGrath

Read more:

China Unemployment Situation Grave, Premier Li Warns – CNN

Xi Jinping Sticks With Tough Covid Stance Despite Public Anger

China Politburo: Top priority now is to expand domestic demand

Strict China Lockdowns Could Cut Back Factory Activity in April

Neal McGrath

Neal McGrath is a New York-based financial journalist. Neal started his career covering the Asia-Pacific region for the Economist Intelligence Unit, then joined Asian Business magazine. He's subsequently held a variety of editorial positions covering business, economics, finance and sustainability. Neal has lived and worked in Hong Kong, Singapore, Germany and the US.

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