Rise in unemployment in Shenzhen highlighting a bigger national issue?

Shenzhen is a modern metropolis that connects Hong Kong To mainland China. The southern city is prominent for its vibrant private economy. But it recently noted a 40% year-on-year increase in freshly registered unemployed residents in Q1 2024.

Shenzhen has been seeing a noticeable spike in joblessness rate, a figure that has provoked fresh concerns over China’s employment situation facing the nation’s biggest economic-driving regions, reported South China Morning Post.

The bigger problem is Shenzhen’s recent quarterly unemployment number excludes previously registered jobless people, and a number of layoffs go unreported, leading to uncertainties surrounding the famous megacity’s jobless rate.

Beijing must implement measures to revitalise business

Some analysts point to the shifting employment landscape in Shenzhen. Driven by digitalisation and relocation of labour-intensive industries, the city’s service sector is facing greater pressure in retaining jobs, said Peng Peng at the Guangdong Society of Reform.

Experts believe the Chinese government needs to implement substantial measures to revitalise business. There are concerns that the country’s unemployment picture is rather blurry, as only officially documented or surveyed jobless people are tallied.

Beijing needs to foster a more ideal business environment for private and foreign players. The government is hoping that an economic progress rate of around 5% in 2024 can create more jobs to address the demands of record-setting levels of university graduates.