SCIO briefing on China's economic performance in May 2025

Jiupai News:

In the current economic environment, job market stability is critically important. What are the key highlights and concerns in the May employment data? In response to employment challenges, which areas should be prioritized to promote job growth going forward? Thank you.

Fu Linghui:

Thank you for your questions. Since the beginning of this year, the international environment has become increasingly complex and severe, with more uncertainties emerging. This has had a certain impact on businesses' demand for labor. Amid the complex situation, all regions and departments have actively implemented policies and measures to promote high-quality and full employment, increased support for businesses to create jobs, and focused on key groups in the workforce. These efforts have helped maintain overall employment stability. Latest figures show that the national urban surveyed unemployment rate was 5% in May, down 0.1 percentage point from the previous month. The unemployment rate among those aged between 25 and 59, the majority of the labor market, remained stable, while the youth unemployment rate declined for a third consecutive month. The overall employment situation continued its stable trend.

The employment situation in May remained generally stable due mainly to the following factors: First, steady economic growth provided a foundation for stability. More proactive and effective macroeconomic policies have yielded results. Domestic demand has steadily expanded, effectively offsetting the negative impact of external factors. This has ensured the stable operation of the economy, helped stabilize labor demand, and created favorable conditions for employment stability. In May, the value-added output of industrial enterprises above designated size rose 5.8% and the service industry production index increased 6.2%, both maintaining overall stability compared with April. Second, industrial development has been actively promoted. Driven by supportive policies, several industries with large employment capacity performed well, which also contributed to employment stability. Policies encouraging the trade-in of consumer goods and the boost from the holiday economy led to expanded market sales. Industries such as wholesale and retail, accommodation, and catering remained active, supporting employment stability. In May, the production indices for the wholesale and retail industry increased 8.4%, while the accommodation and catering industry rose 6.2%, marking a significant acceleration in growth compared to the previous month. Third, policies aimed at stabilizing employment have taken effect. Since the beginning of this year, relevant departments have intensified efforts to implement employment stabilization policies. These measures include increased support for enterprises to expand job opportunities, greater subsidies for individuals, and enhanced assistance for people facing employment difficulties. By focusing on the development of new quality productive forces, creating consumption hotspots and advancing key engineering projects, we have actively sought new sources of job growth, expanded vocational skills training and strengthened public employment services. All these efforts have contributed to overall employment stability.

However, it is important to note that employment stability still faces certain pressures, mainly due to the complex changes in the external environment, which have affected the labor market. Domestically, some industries are having difficulty recruiting workers, while certain groups are under significant employment pressure. These trends reflect ongoing mismatches between labor supply and demand. Next, in response to employment pressures, we should follow the decisions and deployments of the CPC Central Committee and the State Council. We need to further stabilize employment and the economy, strengthen vocational skills training, improve the match between labor supply and demand, promote full employment, enhance employment quality, continuously improve people's livelihoods, support stable and healthy economic development, and maintain overall social stability. Thank you.