As China’s economy continues to decline, not only are the inland regions facing economic contraction, but previously developed areas like Zhejiang, Jiangsu, Shanghai, and others are also experiencing tightening. Local residents have reported to Dajiyuan that over the past two years, many industries have been struggling, with numerous companies laying off employees, reducing salaries, and even cutting wages for state-owned enterprise employees. Many young people are unemployed, while those with jobs often rely on their parents for financial support just to get by.
Zhang Wen (pseudonym) works in the hotel industry in Zhuji, a county-level city in Zhejiang province. He told Dajiyuan reporters that the service industry is facing challenges, with significant layoffs. The hotel, which used to have over a hundred staff, now only has dozens left. “Salaries haven’t increased, they have only decreased,” he said.
According to him, the average monthly salary in Zhuji is between 3,000 to 5,000 yuan, while he, as a manager, earns over 6,000 yuan. The average wage in Zhejiang ranges from 3,000 to 6,000 yuan, with higher wages in larger factories. Rent and utility costs exceed 1,200 yuan per month, and his monthly living expenses are over 2,000 yuan, making it difficult to save any money. “I dare not get married or have children now, the pressure of marriage is even greater.”
An article posted on Netease on August 30, titled “Wages in small county towns in Jiangsu, Zhejiang, and Shanghai are collapsing,” highlighted the plight of workers in these areas. A friend working in a county-level city under Nantong shared that his monthly salary, previously stable at 8,000 yuan after 5 years in mechanical design, was reduced to 5,000 yuan this year due to a drastic reduction in foreign trade orders. Quarterly and year-end bonuses were eliminated, and half of the frontline workers were laid off. He lamented, “Before, I could save some money for a down payment, but now after deducting social insurance, I barely have enough to eat. I can hardly afford my mortgage.”
The article points out that this wage decline is not limited to a single county town but is a widespread issue. It mentioned that many of the lower-end production capacities have moved to Southeast Asia, resulting in a significant cut in factory orders and consequently wage reductions to lower costs.
Even state-owned enterprises are not immune to wage cuts. A woman named Yang Li in Nanjing, Jiangsu province, a college graduate working for a state-owned enterprise engaged in preliminary exploration and topographic mapping for nuclear power plants, conveyed her distress. After working for four years, her initial monthly salary of 10,000 to 20,000 yuan upon regularization has now been reduced to 5,000 yuan per month, with potential further reductions to 3,900 yuan. She described the challenging situation where projects were scarce, and even the bonuses for 2025 were not paid out.
Yang Li observed that the company has been laying off staff over the past two years, some employees resigned on their own, and she is cautiously monitoring the job market. “Wages in Nanjing are generally low, and finding work is particularly difficult as companies continue to downsize.”
A young man from Shanghai who goes by the pseudonym Xiaotong had been unemployed for three months after working in the design field for two years. He now resides in a rented room for 2,200 yuan a month, prepares his meals to save costs, spending only 10 yuan a day on food.
According to Xiaotong, even if he manages to find a job, the average monthly salary in Shanghai is around 5,000 yuan. This income barely covers living expenses in Shanghai, leaving no room for savings. “Just surviving is considered lucky. Almost no social life, can’t afford to go out.”
Another individual from Zhejiang, Niu Ming (pseudonym), shared his concerns with Dajiyuan reporters. Several of his fellow graduates are struggling to find stable employment, spending their time idly playing games. He mentioned some classmates who had military obligations during university and are now left jobless after completing their service. Those fortunate enough to find work in Shanghai earn 5,000 to 6,000 yuan per month, barely making ends meet. “The wage disparities across the country are substantial, but the bottom line is almost the same,” he lamented.
The author of the aforementioned article also highlighted the influx of young people from Shanghai and Hangzhou back to county towns to vie for jobs, directly causing a decrease in wages for non-state positions.
The harsh reality is that salaries even for positions requiring a college degree or even a master’s degree are stagnating around 3,000 yuan, with no signs of improvement due to the oversupply of job seekers. Subsequently, businesses have no incentive to raise wages, worsening the already precarious employment situation.
Xiao Chen from Jiaxing, Zhejiang, who graduated from college two years ago, has been working in new media and live streaming e-commerce, earning a monthly salary of 7,000 to 8,000 yuan. He noted a trend where live streamers are accepting pay cuts, with their previous earnings halved or reduced to a fraction of what they used to make. “I consider myself fortunate to earn 7,000 to 8,000 yuan. If I have to pay rent, I’m left with around 3,000 yuan per month. If I go out with friends every month, there’s hardly anything left. I’m lucky that I’m supported by my parents, staying with them, allowing me to save some money.”
He further explained that most ordinary workers in the area earn around 3,000 to 4,000 yuan after tax, similar to living costs in first-tier cities. Rent typically ranges from 800 to 1,200 yuan per month. “In larger factories, the average line worker’s salary before tax is around 6,000 yuan, with many only earning four to five thousand. These jobs are extremely demanding, requiring 12-hour workdays, mostly without rest days. The pay is inadequate, and many employers do not provide social insurance.”
He expressed his sentiments about the current economic conditions in the country, emphasizing the challenges faced by the younger generation, especially those without parental support. “I’m not married and don’t plan to. Without a house or car, why get married? It’s impossible to survive without parental support. The younger generation is in a tough spot.”
Many of Xiaochen’s friends depend on their parents for survival, job hunting, and even real estate acquisitions. “My parents are entrepreneurs, but their businesses are also struggling.”
On September 1, the official Chinese Communist Party periodical “Qiushi” released an article discussing the state of the Chinese economy, admitting that “the expectations, confidence, and behavioral choices of some micro-subjects are changing, and vitality in some areas has weakened.” The article mentioned that enterprises are more inclined to hold onto cash, reluctant to expand investment or increase employment.
Analysts believe that against the backdrop of the Communist Party championing the “theory of economic prosperity,” such official acknowledgments indicate a more challenging economic situation than suggested.
In late August, due to the sluggish Chinese economy, the Central Finance and Economic Commission published articles under the pseudonym “Zhong Caiwen” for four consecutive days in an attempt to boost market confidence. However, the effectiveness of these measures was questioned by observers.
Hong Kong’s “Ming Pao” opined that relying on a few articles won’t revitalize the market, restore confidence, or promote the “theory of economic brightness.” The focus needs to shift towards implementing practical solutions to address income and expectation issues. The average citizens are still struggling, facing an increase in actual unemployment and a decrease in income.
Qin Peng, a veteran political and economic analyst based in the U.S., stated in a self-media program that the Communist Party is not just facing the question of whether to save the economy but is caught in a dilemma or even multiple dilemmas.