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.