Despite a slight growth in financial performance, China’s top private companies cut their workforce last year, with 10.66 million people employed by the 500 leading private enterprises in 2023 – a decrease of 314,600 jobs compared to the previous year, according to a report from the All-China Federation of Industry and Commerce. This reduction has sparked concerns about the impact of the ongoing economic slowdown on private businesses.
Economists suggest that factors like increased automation and a push for efficiency in competitive markets may have contributed to the job cuts, particularly in the manufacturing sector. The need for additional government support for private firms has been highlighted, especially after Beijing introduced a new draft law aimed at revitalizing the private economy.
The report also revealed that 66.4% of the surveyed firms are in manufacturing, showing a predominance of labor-intensive industries among China’s top private enterprises.