New Delhi: China’s latest unemployment figures have drawn renewed scrutiny, as official data point to a modest rise in joblessness, while analysts are of the view that the situation is far worse, according to a media article.
According to figures released by the National Bureau of Statistics, the country’s surveyed urban unemployment rate climbed to 5.3 per cent in February, marking a six-month high, according to the article published in Uganda’s PML Daily.
The rise in unemployment comes amid ongoing economic challenges, including slower growth, shifting industrial priorities, and pressures within key sectors such as real estate and manufacturing, the report observes.
The reported unemployment rate is based on a survey of the urban workforce, focusing on individuals who meet specific criteria.
It primarily covers residents who have lived in urban areas for at least six months, effectively excluding a large segment of the population that does not meet this threshold. As a result, the official figure reflects a narrower section of the labour market, leaving out groups whose employment status may be unstable or difficult to categorise under existing definitions.
One of the most closely watched indicators in recent years has been youth unemployment. Data released in late 2025 showed that the jobless rate among individuals aged 16 to 24 rose to 16.9 per cent, although this figure excluded students still enrolled in education.
The exclusion of students from youth unemployment calculations followed a methodological adjustment introduced in 2023. While officials have framed the change as an effort to improve accuracy, analysts note that it also removes a substantial cohort of young people who may be struggling to transition into the workforce.
Another significant gap in the data relates to China’s vast migrant worker population. Numbering over 300 million, this group represents a critical component of the country’s labour force, particularly in urban and industrial sectors.
However, migrant workers often fall outside the scope of official unemployment statistics. Many retain rural household registration, and when they lose jobs in cities, they frequently return to their hometowns. In doing so, they are no longer classified as part of the urban workforce and therefore do not appear in unemployment surveys.
China’s labour market has also seen a significant expansion of informal and flexible employment. By the end of 2025, estimates suggested that around 280 million people were engaged in gig or short-term work arrangements.
Under current statistical methods, individuals who perform even minimal paid work during the survey period—such as one hour in a given week—are classified as employed. This approach includes gig workers, temporary labourers, and those in irregular employment, regardless of income stability, the report points out.
As a result, individuals with limited or inconsistent earnings are counted as employed, despite facing conditions that may resemble underemployment or economic insecurity. Analysts describe this as a form of “hidden unemployment,” where official figures fail to reflect the quality and sustainability of work, the report added.
(IANS)
