Image caption: On October 18, 2021, construction at Evergrande’s Wuhan Cultural Tourism City site in Hubei Province, China, had come to a halt. (Photo by Getty Images)
[People News] Economic census data from China reveals that the workforce in the financial and real estate development sectors has significantly decreased over the past five years. Once hailed as "golden industries," these sectors are now plagued by frequent layoffs, forcing many professionals to transition into self-media, state-owned enterprises, or other fields to make a living. While the Chinese government claims that employment growth in the secondary and tertiary sectors aligns with economic development patterns, experts argue that the data reflects deeper crises, such as rising unemployment and industrial contraction.
A 37-year-old woman from Xinjiang, identified as Ms. Tian, labeled herself as a "middle-aged financial industry unemployed worker" and began a new career in self-media following her layoff in November. Before this, she had worked for 14 years in a securities firm.
According to Voice of America, many unemployed financial professionals have shared similar experiences on social media platforms like Xiaohongshu.
A blogger named "Cheer Up," who was laid off in October from an investment bank in Shanghai, spent two months unsuccessfully seeking jobs in securities and startups before returning to his hometown in Henan Province. He posted, “The industry is in turmoil, and expenses exceed income. Even the most humane companies must lay off employees… You have to exhaust every resource and connection for any position.”
Another Beijing-based blogger, “Unfortunate Night for the 30-Year-Old Peking University Financial Master,” shared that he had been unemployed for over 100 days and attended more than 30 interviews before settling for a state-owned enterprise job. Despite having to accept a halved salary and a longer commute, he reluctantly posted, “Starting over at thirty.”
They are just a few examples among millions of unemployed financial professionals. Data from the National Bureau of Statistics released on December 26 shows that the tertiary sector employs 264 million people, a 25.6% increase since 2018. However, the financial industry is the only sector where employment has decreased, with 12.35 million employees—a sharp decline of over 5.8 million, or 32%, compared to 2018.
The Wave of Financial Layoffs: From Peak to Survival
Many laid-off financial professionals have turned to Xiaohongshu, using tags like "Unemployed Finance Workers" and "Layoff Transitions" to share their struggles, fueling widespread anxiety on social media.
In contrast, Ms. Tian prepared well for her career transition. Within a week of losing her job, she began working on self-media platforms, sharing her journey under the theme of "Restarting Life."
Speaking to Voice of America, she said, “From the peak era in securities, when one could effortlessly win, to now, competition has become increasingly fierce. Even if you work extremely hard, your income may not match what it once was. You must gradually accept this reality because the industry is declining.”
Ms. Tian first noticed a drop in commission income in 2017. With limited tools to help clients achieve positive returns, acquiring new clients became increasingly difficult, and existing clients saw persistently low yields. Sensing the industry shift, she diversified her skills, taking on side jobs like teaching dance classes on weekends to generate additional income. After her company laid her off under the pretext of "contract expiration," she relied on her side gigs to maintain her income while exploring new opportunities through self-media.
Ms. Tian pointed out that while first- and second-tier cities have experienced waves of salary cuts and layoffs for years, smaller towns with populations of only tens of thousands only began to feel the effects this year. Smaller securities firms, with limited business models, continue to face declining trading commission profits, leaving many frontline professionals like her vulnerable to layoffs. Large securities firms, on the other hand, have primarily adopted salary reduction measures rather than layoffs, thanks to their broader client bases.
She analyzed that two major groups are under significant layoff pressure: new entrants to the industry without resource backgrounds, who fail to meet performance targets; and older, more senior employees, whose contracts are not renewed due to company downsizing strategies.
Transitioning out of the financial industry is far from easy. Ms. Tian observed that highly educated investment banking researchers might secure roles as analysts in corporations, while bank wealth managers often move to securities firms. Younger, less experienced financial professionals tend to aim for regulatory agencies, such as the China Securities Regulatory Commission, through civil service exams. However, frontline investment advisors like Ms. Tian face considerable challenges in finding new opportunities, often ending up in sales or insurance roles.
Ms. Tian remarked that China's financial industry is undergoing a restructuring phase. Securities firms continue to face market volatility, and the industry's primary task is to transform—offering better mutual fund products to create a positive cycle. However, large securities firms are likely to merge with and acquire smaller firms in the future, leading to continued staff reductions. Adding to this, many university graduates prioritized finance majors in recent years due to the industry's promising outlook, resulting in an influx of young talent. This will further intensify job market competition in the coming years.
Challenges in Transitioning from Real Estate Development
In addition to the financial sector, economic census data shows that while overall employment in the real estate industry grew by 14%, certain areas experienced stark declines. Employment in property management and real estate brokerage services increased by 34% and 18%, respectively, marking highlights of growth in the sector. However, employment in real estate development and operations fell to 2.71 million people, a 27% drop over five years. Employment in the construction industry also declined by 11.9%, reflecting a clear downward trend.
A December 26 report by Bloomberg analyzed how these trends in China’s industrial structure diverge from the broader trend of rising employment in tertiary industries. The financial sector has faced significant setbacks due to regulatory investigations, anti-corruption campaigns, and salary reduction policies. Meanwhile, the real estate market has plunged into the most severe slump in modern Chinese history, forcing developers into default.
Ms. Shi, who works for a foreign-owned commercial real estate property firm in Shanghai, noted that foreign enterprises often adopt hiring freezes, which make their personnel changes relatively stable compared to the large-scale layoffs or talent losses seen at domestic Chinese real estate companies. However, she admitted that the biggest change over the past two to three years has been the sharp reduction in opportunities for promotions and salary increases.
Ms. Shi stated that since the pandemic, China’s real estate industry is no longer considered a "high-value" sector. The persistent slump in the market has hit small developers the hardest, driving the highest number of career transitions. In contrast, the commercial real estate and asset management sectors—covering businesses like hotel and apartment rentals—enjoy more stable cash flows, leading to less volatile personnel changes. Projects in major cities like Shanghai and central urban areas have also been less affected than those in rural or suburban areas. She added that urban real estate projects facing operational difficulties often receive some level of government support or assistance.
She told Voice of America, “Switching careers is difficult regardless of the industry unless your skills are highly transferable. Talent loss at domestic enterprises is a real issue. People have two choices: either leave the industry entirely or stay with the company and accept lower pay. Moving to another company in this economic environment usually means accepting a pay cut and a demotion.”
Ms. Shi noted that real estate sales professionals find it relatively easier to transition into other sales roles in different industries, but it is much more challenging for land development personnel to change careers, often resulting in lower salaries and diminished benefits.
The real estate sector is experiencing a polarization in employment distribution. While property management and brokerage service roles are increasing, development and operational roles are significantly declining. He Ling Shi, a professor at Monash University in Australia, pointed out that a wave of bankruptcies among real estate developers has led to reduced demand for developers, especially in third- and fourth-tier cities where housing supply vastly exceeds demand. Conversely, the increasing difficulty of buying and selling homes has necessitated more employees in the real estate brokerage industry.
Severe Talent Drain in China
He Ling Shi emphasized that the financial and real estate industries, traditionally major absorbers of labor, are now experiencing significant workforce reductions, leading to a rise in unemployment—a pressing issue for the Chinese government.
A December 26 report by Radio Free Asia quoted economist Si Ling, who noted that the dual decline in financial enterprises and their workforce not only impacts the quality of China’s economic development but also underscores the severity of unemployment and talent loss in these sectors.
Commenting on the economic census findings, Kang Yi, the director of China’s National Bureau of Statistics, acknowledged at a press conference on December 26 that employment in the secondary and tertiary industries has steadily increased. However, he admitted, “Structural employment contradictions remain prominent in our country, and certain groups face employment difficulties and challenges.”
Professor He Ling Shi argued that the greatest increase in tertiary industry employment has been in wholesale and retail, which grew by 32%. This reflects the rapid development of e-commerce in China, with many workers moving into courier and logistics roles. However, it also highlights the plight of unemployed university graduates, many of whom are resorting to low-barrier, labor-intensive jobs with poor working conditions.
Professor He outlined several reasons for the reduction in financial employment: The Chinese government’s "maximum salary cap" policies have driven elite talent out of the financial sector. The real estate market slump has reduced demand for financial services closely tied to property development. The largest decline in financial employment occurred in the insurance sector, which dropped by 32%, closely linked to the exodus of foreign financial companies from China, many of which include insurance as a significant business component.
He noted that industries once seen as the driving forces of China’s economy are now facing severe talent drain. The Chinese government has yet to establish employment support systems akin to those in Western countries, leaving displaced workers to fend for themselves.
Many unemployed workers are seeking stability in the public sector, which offers secure and relatively well-paying jobs. Some are returning to their hometowns, where living costs are lower, relying on their parents’ pensions for support. Others are venturing into the self-media industry, with a surge in financial channels on social media platforms over the past year, often hosted by individuals with finance backgrounds.
He told Voice of America, “It’s not yet the right time to discuss which industries might better serve these displaced workers’ long-term career development. For now, simply finding a job is a success.”
Professor He concluded that China’s financial sector remains "highly underdeveloped," and the overall contraction reflects a shrinking macroeconomy. Displaced finance professionals will need to find “transitional” jobs to survive while waiting for the macroeconomy to recover and create renewed demand for financial services.
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