Economic Growth and Stock Market Performance - After World War II, Japan's economy began to recover in the early 1950s, achieving an average annual growth rate of 9.2% from 1953 to 1970, surpassing some developed countries [1] - Post-1970, Japan's economic growth rate declined as the advantages of being a latecomer diminished, with a significant drop in growth following the oil crisis and inflationary pressures [1] - From 1971 to 1990, Japan's economic growth rate stabilized around 4%, and further declined to approximately 1% after the real estate bubble burst in the early 1990s [1] Stock Market Returns - From 1953 to 2018, Japan's stock market yielded an average return of 5.5%, exceeding the economic growth rate of 4.3%, attributed to corporate leverage and the capital's advantageous position in income distribution [2] - Despite a downward trend in economic growth starting in the 1970s, stock market returns increased, with a notable rebound from -0.2% in 1983 to 17.2% in 1989 [2] - The rise in corporate profits during the transition phase was driven by industry restructuring and increased concentration in high-end manufacturing sectors such as precision instruments, automotive, and electrical machinery [2] Impact of Economic Conditions on Stock Returns - Following the real estate bubble burst in the early 1990s, Japan's stock market returns fell to 1.3% by 2018, although still above the 1% economic growth rate [3] - The Bank of Japan's stock purchases and subsequent quantitative easing measures supported stock market returns post-2002 [3] - Between 1971 and 1990, there was a positive correlation between government bond yields and stock returns, influenced by capital control relaxation and declining savings rates, while post-1991, the relationship reversed due to declining economic growth and worsening corporate profits [3]

Economic Overview - Nanjing's economy has shown stable growth in the first four months of 2025, building on a strong start in the first quarter [1] - Key economic indicators reflect the city's commitment to economic development and project promotion [1] Industrial Performance - The industrial added value in Nanjing increased by 6.2% year-on-year from January to April, improving by 0.9 percentage points compared to the same period last year and by 3.0 percentage points compared to the entire previous year [1] - Manufacturing added value grew by 6.8%, with the automotive manufacturing sector experiencing a significant increase of 29.3% year-on-year due to the export of new energy vehicles [1] - The electrical machinery and pharmaceutical industries also saw substantial growth, with increases of 19.8% and 15.9% respectively, driven by new lithium battery models and mass production of new drugs [1] Fixed Asset Investment - Fixed asset investment in Nanjing decreased by 5.9% year-on-year in the first four months, but the decline was narrowed by 1.3 percentage points compared to the first quarter [1] - Manufacturing investment rose by 10.1%, contributing 36.2% to the overall investment growth [1] - Investment in equipment and tools increased by 18.2% year-on-year, while high-tech industry investment grew by 13.2%, with high-tech manufacturing investment surging by 26.9% [1] Consumer Market - The total retail sales of social consumer goods in Nanjing reached 294.46 billion yuan, marking a year-on-year growth of 5.9%, which is an increase of 2.5 percentage points compared to the same period last year and 1.6 percentage points compared to the previous year [2] - The "old-for-new" policy has boosted retail sales in various categories, with home appliances and audio-visual equipment, cultural and office supplies, communication equipment, and automotive goods seeing year-on-year growth of 15.9%, 38.1%, 37.8%, and 10.3% respectively [2] Price Trends - Consumer prices in Nanjing decreased by 0.4% year-on-year in the first four months, with specific categories such as clothing, education, culture, entertainment, and healthcare seeing slight increases [2] - The industrial producer price index fell by 1.9% year-on-year, while the purchasing price index for industrial producers decreased by 2.5% [2]

Core Viewpoint - The article emphasizes the increasing pressure on youth employment and the need for enhanced employment stabilization policies in response to rising unemployment insurance expenditures [1][6][8]. Group 1: Causes of Employment Pressure - Structural unemployment is primarily driven by industrial restructuring and potential frictional unemployment due to tariffs. The proportion of unemployed individuals with junior high school education remains around 35%, while the share of college graduates and postgraduates has been increasing, reaching 15.5% and 2.2% respectively by 2022 [2][12][72]. - The overlap between low-education groups and migrant workers is significant, with both groups transitioning from manufacturing and construction to the tertiary sector. In 2022, 37.9% of unemployed individuals previously worked as production equipment operators, an increase of 7.5 percentage points since 2018 [17][72]. - Trade friction poses a risk to employment stability, particularly in industries with high reliance on imports from the U.S., such as computer communication and electrical machinery, where the average employment share exceeds 15% [3][30][78]. Group 2: Employment Opportunities - New demands and technologies are creating new job opportunities, particularly in social and life services. By 2023, employment in the tertiary sector increased by 2.8 percentage points compared to 2018, reaching 33.8% [4][40][79]. - Flexible employment roles, such as ride-hailing drivers and delivery personnel, are rapidly increasing, with the number of professional streamers projected to grow by 157% in 2024. This growth is attributed to lower educational requirements and experience needed for these positions [46][79]. - High-education groups face challenges as traditional industries contract while new technology sectors expand. From 2019 to 2023, employment in new technology sectors like electronic devices and electrical machinery grew at average rates of 9%, 8%, and 8%, while traditional sectors like oil and gas extraction saw declines of -5%, -3%, and -2% [52][53][79]. Group 3: Core Strategies for Employment Stabilization - The focus for stabilizing employment should be on enhancing support for the service sector while addressing skill mismatches in the labor market. Recent policies, such as paid internships for graduates, aim to bridge the gap between education and job market needs [5][57][80]. - Developing the service sector is crucial for alleviating employment pressure on low-education and migrant worker groups, as industries like accommodation and retail generate more jobs per unit of added value [60][67][80]. - Small and micro enterprises, representing a significant portion of the economy, require more fiscal and financial policy support to stimulate market demand and reduce operational costs. Recent surveys indicate that 47.4% of small business owners seek cost reduction measures, while 40.6% require financial support [67][80].