Harry Murphy Cruise Highlights Job Cuts in China's Private Economy
Job Cuts in China's Private Economy
According to a recent report by the All-China Federation of Industry and Commerce, China’s leading private firms have cut their workforce despite a slight growth in profits, highlighting ongoing challenges in the private economy.
The Financial Performance and Job Reductions
- The top 500 private enterprises collectively employed 10.66 million people in 2023, a reduction of 314,600 jobs.
- Even with an increase in net profits after taxes by nearly 3% to 1.69 trillion yuan (approximately US$239 billion), companies are struggling with workforce stability.
Harry Murphy Cruise, an economist at Moody's Analytics, noted, “Increased automation and a push for efficiency in competitive markets could be impacting employment decisions.”
Shifts in Manufacturing and Services
- Manufacturing firms, which constitute 66.4% of the surveyed group, face significant pressures amid an economic slowdown.
- More than 60% of these firms are investing in digitalizing their workflows, showing a commitment to adapting to new market demands.
The Need for Government Support
As job cuts become a growing concern, the need for government intervention is more pressing than ever. Luo Wen from the State Administration for Market Regulation emphasized the goal to reduce corporate burdens and promote equal treatment for private firms.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.