China create 6.78 million jobs in the first half of 2023

By Al Mayadeen English
Source: Agencies
21 Jul 2023 19:01

The spokesman for the Chinese Ministry of Human Resources and Social Security announces that China has surpassed 57% of the yearly target of creating new jobs set by the government.

Workers chat near robots from Chinese intelligent robot manufacturer Dataa Robotics displayed during the 2023 World Artificial Intelligence Conference held in Shanghai, Thursday, July 6, 2023 (AP Photo/Ng Han Guan)

On Friday, Chen Feng, the spokesman for the Chinese Ministry of Human Resources and Social Security, announced that China successfully generated 6.78 million new jobs in cities and urban-type towns during the first half of 2023. This figure represents an impressive 57% of the yearly target set by the government.

The creation of 6.78 million new jobs has contributed to a decline in the registered urban unemployment rate to 5.2% as of June. This progress signifies a positive development in China's efforts to address employment challenges amid the country's social and economic development.

In addition to the job growth, Chen Feng noted that by late June, 32.59 million people who were previously living below the poverty line secured employment. This outcome underscores the Chinese government's commitment to poverty alleviation and social progress.

Back in March, China unveiled its comprehensive social and economic development plan during the annual session of the National People's Congress (NPC). The plan laid out ambitious goals, aiming to reduce unemployment to 5.5% in 2023 through the creation of approximately 12 million new jobs.

The positive job market performance in 2023 builds on the previous year's success. In 2022, China surpassed its target of creating 11 million jobs, with an impressive total of 12.06 million new jobs being generated.

The steady growth in job opportunities and the government's commitment to addressing unemployment and poverty signify China's determination to foster a robust and inclusive economy. As the year progresses, attention will remain on the nation's efforts to achieve its economic goals and support its workforce.

Back in June, the People's Bank of China (PBOC) unexpectedly slashed a key interest rate. The central bank announced a reduction in the seven-day reverse repo rate from 2.0 percent to 1.9 percent, marking the first such adjustment since August 2022.

The seven-day reverse repo rate represents the short-term interest paid by the central bank on loans received from commercial lenders. By lowering this rate, the PBOC aims to boost the domestic money supply and stimulate spending across various sectors.

Economists had anticipated monetary easing measures in the near future, however, in the form of a reduction in the required reserve ratio rather than an interest rate cut, according to Julian Evans-Pritchard, an economist at Capital Economics.