China's Youth Unemployment Hits Record High As Economic Challenges Persist

China, the world's second-largest economy, is grappling with a distressing economic issue as youth unemployment rates reach an all-time high, AFP reported.

The National Bureau of Statistics (NBS) reported that the unemployment rate among Chinese individuals aged 16 to 24 has surged to 20.8 percent, surpassing the previous record of 20.4 percent recorded in April.

The NBS said in a statement that overall urban unemployment remained at 5.2 percent.

Meanwhile, industrial production saw a growth rate of 3.5 percent in May, a decline from the 5.6 percent recorded the previous month, reflecting the gradual return of factories to full capacity.

Retail sales, the major measure of household spending, increased by 12.7 percent year on year, compared to 18.4 percent in the previous month.

Despite near-zero inflation, China's post-Covid economy is being hampered by weak domestic demand.

"All the data points so far sent consistent signals that the economic momentum is weakening," Zhiwei Zhang, president of Pinpoint Asset Management, said in a note on Thursday.