Overview of Workforce Changes in China's Finance and Property Sectors
China's finance and property sectors have seen significant reductions in their workforces over recent years, marking a shift from previous trends of workforce growth in the services sector.
Financial Sector Workforce Reduction
- The financial industry had 12.4 million employees at the end of 2023.
- This figure represents a 32% decrease from five years earlier.
- Factors contributing to this decline include:
- A government crackdown on graft.
- Deep pay cuts.
- Reduced deal-making activities.
Impact of the Housing Market Collapse
- The number of people working for property developers fell by 27%, down to 2.7 million.
- China's housing market is experiencing its worst downturn in modern history.
- Developers face a liquidity shortage and deteriorating balance sheets.
- Country Garden Holdings Co., once the largest property firm, exemplifies firms hit hardest.
Government Response and Economic Adjustments
- Housing Minister Ni Hong suggested insolvent property firms should go bankrupt or restructure.
- The government shifted focus from supporting financially sound developers to injecting liquidity into residential projects.
- Real estate management and sales agency jobs have helped the overall property workforce rise by 14%.
- Conversely, the number of workers in construction firms decreased by 12% to 51 million.
Revised Economic Indicators
China revised its gross domestic product (GDP) for 2023, increasing it by 2.7%, equating to 3.4 trillion yuan, as reported by Kang Yi, head of the National Bureau of Statistics.
