China’s Economic Slowdown Hits Wages in Traditionally Prosperous Yangtze Delta

China’s economic slowdown is increasingly squeezing incomes even in the country’s traditionally prosperous Yangtze Delta, with workers in the region reporting sharp pay cuts, layoffs, and dwindling job opportunities.

Interviews with workers and jobseekers in the region indicate that declining business activities have eroded wages across manufacturing, services, and state-owned sectors.

Some workers report that they cannot afford to buy a home or start a family. They spoke to The Epoch Times on condition of anonymity out of fear of reprisal.

A hotel manager in Zhejiang Province said that the local service industry has deteriorated significantly over the past two years.

“Wages don’t increase; they can only decrease,” the manager told The Epoch Times. “I don’t dare get married or have children now.”

The deterioration is particularly visible in smaller cities and counties that have traditionally relied on manufacturing and export-oriented factories.

An Aug. 30 article published by Chinese online news portal NetEase under the account “New Chinese Culture” described what it called the collapse of wages in smaller cities across the Yangtze Delta.

The article described a worker in Jiangsu Province who had worked in mechanical design for five years. His monthly salary had previously remained stable at about 8,000 yuan ($1,192). After his factory lost more than half of its export orders this year, his salary was cut to 5,000 yuan ($745), while quarterly and year-end bonuses were eliminated.

The factory also laid off about half of its frontline workers, according to the article. Similar wage reductions were occurring in other cities in the region, where manufacturing and export-oriented factories form the backbone of local employment.

Some lower-end manufacturing capacity has moved to Southeast Asia, while factories that remain in China have seen orders reduced, putting pressure on companies to cut labor costs, the article said.

The pressure is not limited to private-sector workers.

A recent college graduate working for a state-owned company in Nanjing, China, told The Epoch Times her salary has been repeatedly reduced despite having a permanent position at the company.

The company conducts preliminary surveys and topographical mapping for nuclear power projects. She said that after completing her probation period, she earned between 10,000 yuan and 20,000 yuan ($1,490 to $2,980) a month in her first year. However, her current monthly salary is about 5,000 yuan ($745).

“It has been reduced little by little. It was cut twice this year,” she said. “The company has been laying off employees for the past two years, and some workers have resigned voluntarily.”

Young Workers Struggle to Find Jobs 

For younger workers who have lost their jobs, the situation can be dire.

A man in his 30s who spent two years in Shanghai working in design told The Epoch Times he has been unemployed for three months.

Even if he finds a job, he said, a monthly salary of about 5,000 yuan ($745) in Shanghai would barely cover living expenses.

“Being able to survive is already good enough. You basically won’t have any social life and don’t dare spend money outside,” he said.

A younger jobseeker in Zhejiang told The Epoch Times that several of his college classmates have struggled to find stable employment after graduation, and those who found work in Shanghai earn wages insufficient to cover their expenses.

The NetEase article also said young people who had moved to major cities such as Shanghai and Hangzhou are increasingly returning to their hometowns because of the difficulty of finding jobs. Their return has added competition for the limited white-collar jobs available in smaller cities, putting further downward pressure on salaries.

For some young workers, financial support from their parents has become an important way to stay afloat.

A recent college graduate in Zhejiang Province has worked in social media and livestream e-commerce for two years. Yet he lives with his parents and receives financial support from them.

“The whole country’s economy is not doing well now. Young people are the worst off, and those without parents to help them are even worse off,” the e-commerce worker said.

Official Publication Acknowledges Economic Pressure 

The reports from workers come as the Chinese Communist Party’s (CCP’s) official publications have begun acknowledging some of the pressures facing businesses and consumers.

On Sept. 1, the CCP’s propaganda mouthpiece Qiushi published an article on the Chinese economy that acknowledged that economic activity is weakening in some sectors. It also said companies are inclined to hold onto cash, refrain from expanding investment, and avoid increasing hiring.

The acknowledgment came after the regime had repeatedly promoted a more positive assessment of the economy.

In late August, Chinese state media People’s Daily published a series of articles over four consecutive days in an apparent effort to bolster confidence in the economy.

Tang Bing and Gu Xiaohua contributed to this report.