May 2020 Saw Subdued Labour Market Dynamics in China
Due to the strong internal and external headwinds triggered by the COVID-19 pandemic, China’s unemployment rate climbed to 5.9% in the 31 main cities in May, reaching the highest level since 2013. Although the unemployment rate in urban areas continued to decline, decreasing at 5.9% in May, it is still a relatively high level.
In May, China’s labour market dynamics remained subdued, according to the employment components of the Purchasing Manager’s Index (PMI) in manufacturing and services provided by the National Bureau of Statistics. In May, the employment-related PMI components in manufacturing and services reached 49.2% and 48.9%, respectively, staying in contraction territory and indicating that the labour market has worsened compared to April. A figure above 50 indicates expansion compared to the previous month, and below 50 – contraction.
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