China 'zero-COVID' policy saves lives, not jobs

Reuters Videos
2 年前

STORY: Zheng Mili is on her way to a job interview, and she isn't feeling confident.

The Chinese jobseeker has sent hundreds of applications and gone through dozens of interviews.

"There was one company which called me for an interview, and before I went, they told me on the phone that they have received upwards of thousands of applications in one day. So for a job that offers you $1,390 per month and has received thousands of applications in a day - I think the job market is very tough now.”

Zheng is one victim of China's ultra-strict COVID-19 curbs, which have taken a toll on both jobseekers and businesses as Beijing stressed the need to maintain a zero-tolerance approach to the virus.

Since 2020, China has reported just 5,226 COVID deaths among its population of 1.4 billion - a small fraction compared with countries globally.

But while it has saved lives, it has cost the economy.

China's rate of urban unemployment peaked at 6.1% in April 2022.

But official data showed the rate for young jobseekers aged between 16 and 24 reached 19.9% in July, a record high.

Now the high unemployment and slower economic activity could cast a shadow over the Communist Party Congress, which begins on Sunday (October 16).

UBP Bank economist Carlos Casanova says the build-up to the Congress has been a factor:

"Naturally in the run up to this important meeting we have in fact seen them ramp up control measures with there being in over 70 cities now, covering 300 million people with some degree of lockdown in place, naturally in that circumstance there will be some downside risks to activity, especially the service sector but also in the investment front.”

For now it's not clear whether Chinese President Xi Jinping will indicate any easing of restrictions.

Economists predict any change will be very gradual.

As for Zheng though, this time she has some good news – unlike so many others.

“We talked and it looks like they are okay with my salary and will give me an offer soon so I can start working after the national holiday.”