China struggles with youth unemployment and capital flight… Internal weakness of the economy revealed

At present, behind the shining image of China, a deep economic silence is hidden. On the surface, claims of stability and strength are being made, but the ground reality is completely different. The common Chinese citizen is struggling with salary cuts, unemployment and uncertainty about the future. According to a report, layoffs are continuing from big cities to small towns and many businesses are closing. The position of the working class is weakening, due to which consumer confidence has been shaken.

What is the ground reality?

The Chinese government may be making tall claims about economic strength, but the experience of common people is completely different from this. The atmosphere of fear is so great that people are not able to express their problems openly. Many people are sharing their views by hiding their names. The income of working people is continuously decreasing and job security is also in danger. A doctor from Beihai city said that after the Covid-19 epidemic, foreign companies started leaving China, due to which unemployment increased rapidly.

doctors salary

That doctor’s own salary is a big example of this. Earlier he used to get around 20,000 yuan every month, but now it has come down to less than 10,000 yuan. That means his earnings have almost halved. Competition for jobs in every field has increased so much that people are struggling somehow to save their jobs. New opportunities are decreasing and there is no guarantee of stability in existing work.

Government treasury is becoming empty

The impact of this recession is not only on the private sector but also on the government system. According to a resident of Chenzhou area, the financial condition of the local government is in dire straits. To reduce the burden on the treasury, administrative expenses are being cut. Many big projects related to infrastructure have been stalled for a long time. Private companies, which were once the main source of employment, are now struggling to survive. The crisis has deepened due to the exit of foreign companies. Closed shops in markets and delays in factories clearly show how much pressure small traders are under.

Why are the youth giving up?

China’s youth is the most affected by this economic crisis. Even after completing their studies, many students are forced to remain unemployed for months. Those who are getting work are working for a paltry amount of just 30,000 yuan per month. Many youth have to be completely dependent on their families. This frustration has given rise to the trend of ‘lying flat’. Due to lack of opportunities, youth are now distancing themselves from tough competition. Even highly educated youth are doing temporary work like food delivery and ride-hailing, with no future security.

migration of the rich intensifies

Inflation is increasing in the country and consumer confidence has been badly affected in the environment of uncertainty. Common families are also cutting down on essential expenses. The gap between the government’s optimism and the reality on the streets is widening. According to the report, rich families of China are trying to send their property and family members abroad. This migration is a clear indication of their loss of confidence in the country’s economy.