"China May Face 18 Million Unemployed Due to COVID-19"

[Asia Economy Beijing=Special Correspondent Park Sun-mi] Although China's manufacturing sector saw a brief rebound in March, warnings have emerged that up to 18 million people could lose their jobs due to the impact of COVID-19.

According to Chinese media Caixin on the 31st, Nomura Securities forecasted that China's economy would contract by 9% in the first quarter, lowering this year's growth rate to around 1.3%. Furthermore, they predicted that China's exports, which had already decreased by 17.2% in January and February, could decline by about 30% over the next one to two quarters. In the process, they warned that nearly 18 million people, including those in export companies, could lose their jobs.

The urban unemployment rate in February, as announced by the Chinese government, was 6.2%, marking the highest level since related statistics began being published in 2018. Considering that China's unemployment rate had been around 4-5% over the past 20 years, this indicates a sudden surge in job losses due to the COVID-19 impact.

Moreover, this year nearly 9 million university graduates, the largest number ever, will enter the job market, and if they fail to find employment, the unemployment rate could rise further. Some warn that the urban unemployment rate could soar to 10% this year.

The number of job postings on job search sites has also sharply declined.

According to a recent survey conducted by Chinese job site Zhaopin and Peking University Guanghua School of Management targeting 1 million companies in China, the number of job openings from January to February this year dropped by more than 30% compared to the same period last year. Notably, jobs in the media, entertainment, sports, and service sectors saw a significant decrease, and the reduction in job openings was greater among small and medium-sized enterprises than large corporations. Zhaopin reported that companies with more than 10,000 employees saw a 15% decrease in job postings from January to February, while companies with 20 to 99 employees experienced a 30% decrease, and those with fewer than 20 employees saw a 40% decrease.

This content was produced with the assistance of AI translation services.