China, the world’s second largest economy, released mixed data over the weekend, painting a varied picture of the Chinese economy.
Positive Chinese Jobs Data But Concerns Persist
China’s labor ministry reported on Sunday that the Chinese unemployment rate fell to 3.95%. The figure is at its lowest level in more than five years. The ministry of human resources and social security reported on Sunday that 10.97 million new jobs were created in China this year from January to September. The jobs data signals a growth of 300,000 from the same period last year.
Despite the positive Chinese jobs data, Yin Weimin, the head of the ministry, said to reporters that “raising the capacity to employ workers overall still faces large pressures”, adding that “We need to create 15 million jobs per year.”
The official unemployment rate in China has stayed more or less stable despite economic growth dipping to a 26-year low. To boost the stalling economy the Chinese government is implementing ambitious plans to reduce its industrial capacity.
Chinese Property Sales Slow
Property sales in China fell for the first time in more than two-and-half years in September. Housing starts also slowed sharply as measures to cool China’s property boom started to have an effect. Real estate has been a key driver for the Chinese economy. However, an unchecked property booms pose a policy risk to the government who want to avoid the boom and bust scenario. A property crash would weaken the Chinese economy already fragile from slowing growth.
