China's first-quarter gross domestic product print was solid but the data also showed signs of emerging labor market weakness, say Citi analysts in a research note. This includes the unexpected rise in overall unemployment, the uptick in youth unemployment and the record-high jobless rate for the 25-29 age cohort. The unexpected deterioration for early-career workers, who are likely more AI-exposed, seems to point to the unfolding AI-driven displacement, they note. "The structural headwinds from

China's first-quarter gross domestic product print was solid but the data also showed signs of emerging labor market weakness, say Citi analysts in a research note. This includes the unexpected rise in overall unemployment, the uptick in youth unemployment and the record-high jobless rate for the 25-29 age cohort. The unexpected deterioration for early-career workers, who are likely more AI-exposed, seems to point to the unfolding AI-driven displacement, they note. "The structural headwinds from AI adoption are set to intensify," they say. Citi remains cautious on the labor market and consumption outlook. China's mid-year Politburo is likely a plausible venue for policy adjustment, they note.