Li Keqiang Warns of Employment Crisis Due to Lockdown Impact in China: "The Situation Is Serious"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyunjung] Chinese Premier Li Keqiang warned that the employment situation is deteriorating due to the impact of zero-COVID measures, describing the situation as "complex and severe."

According to Chinese local media including Xinhua News Agency on the 8th, Premier Li presided over an employment stability work meeting the day before, instructing all government departments and regions to prioritize measures that help companies maintain jobs and overcome current difficulties. Li stated, "Employment is a crucial issue for people's livelihoods and a key factor in ensuring the economy operates within a reasonable range," emphasizing the fulfillment of the annual employment target and saying, "We must welcome the 20th National Congress of the Communist Party with success."

The Chinese government had set a target urban unemployment rate of within 5.5% for this year, but as of March, it reached 5.8%, the highest in two years. In particular, 16% of young people aged 16 to 24 in urban areas were found to be unemployed. According to the Ministry of Education of China, the number of job seekers newly entering the job market after graduating from university by the end of June this year is a record high of 10.67 million. Including those who have not found employment after graduation, it is estimated that about 16 million people will compete in this year’s job market.

He also emphasized, "We must promote companies to resume operations under COVID-19 prevention conditions and accelerate relief policies such as tax and fee reductions," adding, "We need to help as many market entities as possible, especially small and medium-sized enterprises and self-employed individuals, to maintain jobs." He further stressed the necessity of supporting startups, strengthening vocational training, and ensuring the livelihood of the unemployed.

As of the 7th, China reported 4,384 new confirmed COVID-19 cases. Shanghai, which remains under city lockdown, reported 3,975 cases. Shanghai had announced the postponement of university and high school entrance exams until July the previous day and stated that some manufacturing plants in the city will resume operations. Beijing, actively responding to suppress the spread, reported 62 new confirmed cases on the same day.