China’s Covid-Battered Labor Market Worsens

Unemployment in China is worsening, especially among vulnerable migrant workers, as the economy reels from surging Covid cases.

Unemployment in China increased in November, with migrant workers taking the biggest hit, as its Covid-ravaged economy slumped.

The jobless rate for migrant workers increased to 6% in November, up from 5.5% the previous month.

The nationally surveyed jobless rate rose to 5.7% in November, the highest since May, when Shanghai was in lockdown.

As for China’s 31 major cities, the jobless rate was markedly higher at 6.7%.

Stress on the labor market is set to worsen in the months ahead after the government abandoned its Covid Zero strategy of trying to keeping infections under control – triggering a surge in cases.

Problems are likely to increase with expected widespread absenteeism as workers fall ill or stay home to avoid becoming infected.