Amidst China’s ongoing economic downturn, the job market on the mainland in 2025 is experiencing unprecedented turmoil. Phrases such as unemployment, pay cuts, layoffs, and shutdowns have become all too common, leaving many feeling numb. Under the cascade effect, several industries have become the most challenging areas to work in this year.
NetEase’s certified “high-quality humanistic field creator” and social media influencer “Xiao Tan Discusses Food and Gourmet” reported on September 10th about Zhang Lin, who had worked at a multinational pharmaceutical company for 12 years. One morning, he discovered he was on the layoff list as his entire department was being dismantled, resulting in over 40 colleagues losing their jobs overnight. “When I received the company email, I thought it was a mistake,” he said.
Zhang Lin’s experience mirrors that of many professionals in various industries. According to public opinion, the following industries have been the most challenging since last year up to the present.
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1. Food and Beverage Industry: From Flourishing to Daily Closures
China’s economic gloom has spread throughout the country. The economic “winter” has silently reached people’s “taste buds,” with food and beverage enterprises facing pressure from economic downturns, uncertainties, major shifts in consumer behavior, intensified competition within the industry leading to thin profit margins or substantial losses resulting in closures.
In 2024, the food and beverage industry experienced a ruthless reshuffle. Nationwide, while 3.18 million new food and beverage establishments opened, 1.35 million closed, resulting in an average of 3,700 closures per day.
In Beijing, scale food and beverage enterprises with annual main business income equal to or exceeding 2 million yuan are considered industry leaders. However, official data for January to June this year showed a stark decline in key performance metrics, with operating income down by 3.7%, operating costs by 1.2%, and total profit plunging by 67%.
According to a report by “Xiao Tan Discusses Food and Gourmet,” a 20-year veteran restaurant owner lamented, “Being good at cooking does not equal success in running a restaurant. Nowadays, 90% of restaurant owners can’t last more than two years.” This is not a matter of capability but a fundamental change in the industry’s logic.
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2. Automotive Industry: New Energy Booms, But Struggles More
The Chinese automotive industry is in a double-edged sword situation. On one hand, new energy vehicle companies are flocking in as internet giants like Huawei, Xiaomi, and Xiaopeng enter the market. On the other hand, traditional fuel vehicle inventories are exploding, leading to intense market competition.
Many automotive sales consultants are forced to switch to delivery services, reflecting a shift in consumer spending habits as middle-class families postpone replacing vehicles, opting to continue using their existing cars.
The backstage positions are also facing the fate of “downsizing for efficiency.” The automotive market has turned into an elimination game, where brands without resources or market shares are left waiting to leave the industry.
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3. Baby and Infant Industry: Market Preserved, But Demand Dwindles
The trend of declining child births in China is becoming more prominent. Official data showed that last year, there was a decrease of over 20,000 kindergartens and more than 5 million children attending kindergartens.
Reported by “Southern Metropolis Daily,” the “2024 National Education Development Statistics Bulletin” revealed a continued decline in the number of schools in various levels and categories in China. The number of diversified kindergartens decreased by over 20,000 compared to 2023.
Amid rising childcare costs and uncertain job prospects, China’s birth rate has been consistently dropping in recent years. Though there was a slight increase in newborns last year after a seven-year gap, the total population decreased for three consecutive years due to more deaths than births.
According to “Xiao Tan Discusses Food and Gourmet,” the continuous decline in birth rates has directly impacted the entire baby and infant industry chain. Decreased baby formula sales and substantial stockpiles, halted production in infant clothing factories, and deserted mother-baby stores have resulted from this downward trend.
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4. Photovoltaic Industry: Over 150,000 Job Losses
The photovoltaic industry is going through chaotic times. Over 150,000 people in the industry have lost their jobs under the impact of the industry’s downturn, with pay cuts, layoffs, and shutdowns becoming the new norm.
Even high-paying executives are finding it hard to escape the turmoil. Rough statistics from Huaxia Energy Network showed that over 50 executives in the photovoltaic industry resigned or left their positions this year, involving 33 listed photovoltaic companies and core executives.
Companies like Longi Solar, TCL, JA Solar, Jinko, Best Solar, and Trina Solar suffered a combined loss of 20.173 billion yuan in the first half of the year, illustrating the severity of the industry’s harsh winter.
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5. Real Estate Industry: Possibly Beyond Recovery
The real estate market is undergoing a massive collapse. In the first quarter of 2025, the sales of the top 100 real estate companies dropped by 47.5% year-on-year. With unclaimed land, unsold properties, and widespread financial constraints, the real estate bubble has burst.
Reported by “Xiao Tan Discusses Food and Gourmet,” sales personnel are switching to short videos, designers are being laid off, and engineers are venturing into home decoration. A real estate agent admitted, “This is the most challenging period in the past ten years.”
The future lies in “inventory transformation and urban renewal” as the myth of skyrocketing real estate prices has been completely shattered. A report by “Sanlian Life Weekly” on September 9th confirmed this judgment, pointing out that many areas in China’s first-tier cities like Beijing, Shanghai, and Shenzhen have seen property prices plummet back to 2016 levels or earlier, with accelerating downward trends.
Recently, Shanghai, Beijing, and Shenzhen have collectively loosened property purchase restrictions due to continual price decreases. The lifting of these restrictions is the only choice left after exhausting all market-saving measures. However, in cities like Guangzhou, where purchase restrictions were completely lifted last year, property prices continued to decline without any sign of stabilization. Latest data indicated a 4.6% drop in new housing prices and a 6% decrease in the resale market compared to the same period last year.