China’s Urban Unemployment Stable but Broader Labour Underutilisation Rises, Say Standard Chartered Economists

Standard Chartered economists Hunter Chan and Shuang Ding report that China’s urban surveyed unemployment rate has remained steady within a 5.0-5.4% range over the past three years. Despite this apparent stability, broader measures of labour underutilisation have increased, signaling underlying challenges in the job market.

According to FX Street, while headline unemployment figures suggest a stable labour market, the rise in broader underutilisation indicates that more workers may be underemployed or marginally attached to the workforce. This nuanced data release highlights complexities beyond the traditional unemployment rate metrics.

For Japanese investors and market participants, understanding these dynamics is crucial as China’s labour market conditions can influence regional economic growth and impact FX and equity market sentiment in Asia.