The severity of economic issues in mainland China has come to light recently with discussions within Beijing’s state-owned enterprise circle about a wave of layoffs and pay cuts.
A post titled “Is the 2024 Wave of Layoffs and Pay Cuts Really Coming?” by an employee of a Beijing state-owned enterprise in early August sparked heated debate. The author mentioned hearing rumors about impending layoffs and pay cuts, and expressed surprise that the day had finally arrived.
The author lamented the situation where employees were only paid according to the minimum wage standard in Beijing, earning 2300 yuan a month, totaling 7000 yuan for three months. With quarterly rent at 10,000 yuan, the remaining 3000 yuan barely covered living expenses. Colleagues who had mortgages were facing difficulties making payments, adding to the financial strain.
The article garnered attention and resonated within Beijing’s state-owned enterprise circle, with many people venting their frustrations in the comment section.
An IT worker in Beijing revealed how their company forced employees to resign during the quarantine period by paying minimum wages, delaying salary payments, and eventually coercing voluntary resignations. They shared tactics used to delay salary payments and evade compensating departing employees.
Individuals who experienced similar circumstances shared their stories, including being forced to accept reduced wages at 2400 yuan a month, struggling to find new employment opportunities in their 40s.
A kindergarten teacher mentioned facing pay cuts and position adjustments, with those unable to cope being indirectly pressured to resign without compensation.
Various individuals shared their own salary struggles in Beijing, with some changing jobs frequently to earn around 3000 yuan per month, highlighting the challenging economic conditions.
The online responses and discussions around the theme of layoffs and pay cuts in 2024 shed light on the widespread impact and concerns across different industries and regions.
A financial professional, who has been in the industry for 14 years, highlighted the changing landscape where state-owned enterprises no longer offer job security, citing instances of layoffs, wage reductions, and the shift towards a sales-oriented culture within companies.
Experts and netizens voiced concerns about the impending challenges faced by the majority of individuals in 2024, predicting a period of widespread wage cuts and economic uncertainties.
In an interview with Time magazine, US President Biden expressed views on China’s economic situation, stating that despite previous perceptions of strength, the Chinese economy is on the brink of collapse.
Amidst these discussions and revelations, the uncertainties and struggles faced by individuals in the Chinese job market continue to evolve, prompting reflections on the current economic landscape and future prospects for the workforce.