Employment confidence dives to lowest level since 2009

A Chinese index of employment confidence dived in the second quarter to its lowest since the financial crisis of 2008 and 2009, a central bank survey showed on Wednesday June 29 after tough COVID 19 curbs took a toll on the economy from April to June.

Nearly 46 per cent of Chinese households think the employment situation remains grim in the second quarter, according to urban depositors surveyed by the People's Bank of China PBOC.

Since 2009, the indicator of future expectation of employment has dropped to the worst level since 2009.

Premier Li Keqiang said that China would try to restore the economy to normal and cut the unemployment rate as soon as possible, with the survey-based unemployment rate in 31 big cities rising to 6.9 per cent in May.

A cohort of graduates larger than the whole population of Portugal is about to enter one of China's worst job markets in decades, at a time when youth unemployment is at a record 18.4 per cent.

More than 58.3 per cent of households are more likely to save rather than invest in the second quarter because of economic uncertainties, up from 42.4 per cent in the first quarter, according to the PBOC survey.

The commercial hub of Shanghai was under full lockdown in May, despite signs of economic recovery in May, underlining the challenge of positive GDP growth.

The bank released a survey of bankers showing a decline in loan demand in the current quarter.

The index of loan demand dropped to 56.6 per cent, the lowest level since the third quarter of 2016 with declines in the manufacturing, infrastructure, retail sales and property sectors.

An index of entrepreneurs' confidence fell by 9.2 percentage points for the second quarter from the previous quarter, and was down 15.5 percentage points on the year as COVID 19 lockdowns shut businesses.