Chinese workers see biggest drop in hiring salaries on record
- Average salaries offered to new hires in 38 key Chinese cities fell 1.3 per cent to US$1,458 in the fourth quarter of 2023 from a year ago
- China has seen salary cuts in many sectors including technology, finance and among local government workers due to regulatory crackdowns and strained public finances
Wages offered to Chinese workers in major cities declined by the most on record, underscoring persisting deflationary pressures and sluggish consumer confidence in the world’s second-largest economy.
Average salaries offered by companies to new hires in 38 key Chinese cities fell 1.3 per cent to 10,420 yuan (US$1,458) in the fourth quarter of 2023 from a year ago. That was the worst drop since at least 2016, according to data from online recruitment platform Zhaopin compiled by Bloomberg.
It was also the third straight quarter of decline, the longest run since data on yearly changes were first available in 2016.
In Beijing, the wages decreased 2.7 per cent from a year ago in the fourth consecutive quarter of contraction. Salaries in the southern metropolis of Guangzhou fell 4.5 per cent.
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The data highlights the mounting deflation risks faced by China going into 2024, which weigh on its growth outlook. A gloomy job market means residents could pare back their spending, adding to downwards pressure on consumer prices that are already falling at the steepest pace in three years.