China’s tech boomtown Shenzhen struggles under weight of lost jobs, dwindling profits and demand woes
- Weak consumption, lay-offs, supply-chain disruptions and other headwinds take hefty economic toll on China’s southern technology hub of Shenzhen
- ‘Everyone is frustrated about the economic outlook,’ Shenzhen worker laments as livelihoods continue to be adversely affected
Late last month, Zeng Zhao, who runs a Shenzhen tech company developing educational software and has been looking to hire a new software engineer, was surprised to find a large number of experienced but jobless engineers seeking work in China’s tech hub.
“My HR interviewed a total of 10 engineers [for the one post]. Eight of them said they left their last job either because they were fired by tech giants or because payrolls were delayed for months by other small and medium-sized tech companies,” Zeng said.
“Most of them have mortgages to repay and were in a hurry to find their next job. A software engineer with three to five years of experience is now asking for about 10,000 yuan (US$1,500) to 15,000 yuan per month. It is lower than [last year].”
More people in the southern tech and manufacturing hub, well known for its new money, technology boom and property frenzy, have been commiserating on lay-offs, pay cuts, tightening cash flows and plunging demand, according to Zeng.
Despite signs of improvement, China’s economy is still feeling the pinch of the nation’s strict coronavirus-control measures, which have disrupted economic growth, including in Shenzhen, which should soon release its gross domestic product (GDP) data for the year’s first half.