This is a labour market in Guangzhou, where unemployment is rising. Many people are even pleading: "As long as there’s food to eat, it’s enough." (Screenshot from video)
[People News] Recently, a troubling trend has emerged in mainland China: as financial resources dwindle, an increasing number of companies are beginning to delay wage payments and, in some cases, are unable to pay wages altogether. This includes even those companies that were once considered invulnerable. Netizens are expressing their concerns, asking how they can survive in 2025.
The economic landscape in mainland China in 2025 is pushing more and more companies into an unprecedented crisis. State-owned enterprises, large private companies, and even some foreign-funded firms, once seen as having a 'secure job for life', are now facing issues such as wage arrears, layoffs, and even closures.
Online, netizens are sharing stories of unpaid wages: a friend received only half of their salary last month, with the company citing 'cash flow difficulties' as the reason; a private school where my cousin works has delayed salary payments for three consecutive months; even Aunt Wang, a neighbor who has worked at the same factory for twenty years, is now experiencing wage arrears.
'After 15 years of work, this is the first time I've encountered unpaid wages,' said Mr. Zhang, who works at a state-owned manufacturing company in Shandong. He noted that the company has delayed salary payments for two consecutive months, with management explaining that 'cash flow is tight.'
According to data from the Ministry of Human Resources and Social Security for the second quarter of 2025, the number of unpaid wage cases in Chinese enterprises has risen by 37% year-on-year, affecting various sectors, including manufacturing, real estate, education and training, and retail.
A report from Sohu indicates that small and medium-sized enterprises have the highest rate of unpaid wages, but some large companies, including publicly listed ones, are also facing salary payment delays. The construction industry, service sector, and foreign trade companies have become 'disaster zones' for wage arrears, with some employees experiencing salary delays of over three months. Some firms that were once deemed too big to fail are now encountering operational challenges.
For instance, a well-known home appliance manufacturer has been reported to cut 30% of its workforce, with some employees receiving only 70% of their salaries; a local city investment company has postponed performance bonuses, resulting in a significant drop in income for frontline employees; a chain restaurant brand has had to close several locations nationwide due to a disrupted cash flow, leaving employees unable to collect their wages.
Many netizens have shared their struggles, stating that mortgage and car loan payments are overwhelming, while expenses for children's education and elderly medical care, along with credit card debts, are escalating. With salaries not being disbursed, how can one continue to make ends meet? If solutions are not found soon, they fear they may not even be able to afford food. What can be done to survive during this economic downturn?
Others have remarked that in such circumstances, relying on companies or the government is futile. This is a real battle for survival; one must either find a way to cope or risk being left behind. In this situation, how can we take steps to help ourselves?
Some netizens have suggested that it is essential to prepare for four key areas:
1. Fitness
Netizens have pointed out the high cost of illness. After a serious health issue, one might find that a lifetime of savings is insufficient. Engaging in daily running or doing push-ups incurs no cost. But what are the benefits? Increased energy and better health lead to improved work efficiency and a lower likelihood of illness. No matter how you look at it, this is a worthwhile investment.
2. Saving money
Some people are saying that wages are not even being paid anymore, so how can anyone save money?
Netizens suggest that every penny should be tightly managed. Takeout? Cook at home. New clothes? As long as they are wearable, that's sufficient. Don't think that saving money is just for future spending; saving is about keeping a safety net for yourself. If one day you really lose your job, at least you won't be left with nothing the next day.
3. Cut down on spending
Netizens cite the example of a colleague, Xiao Li, as a good illustration. He used to order takeout every day and insisted on dining out on weekends. However, since the company has been struggling financially and wages are often delayed, he has learned to budget more carefully. Cooking at home is both cheaper and healthier. Shopping? If it can be avoided, then don't buy. By doing this, he saves at least 1000 each month. Every penny saved now could be crucial for the future.
4. Start a side hustle.
Setting up a stall, doing housework, tutoring, or driving for Didi—every little bit earned counts.
However, some netizens reject the four suggestions put forth by others.
"Do you really think the little money you save can save your life? Don't be silly! If the economy truly collapses, your savings won't help you at all."
"This is merely a tactic to shift the burden onto ordinary people. If companies can't pay wages and the economy is in a downturn, why should the public bear the cost?"
Nevertheless, even in the face of such challenges, most employees still choose to remain in their positions and are reluctant to leave easily.
The National Bureau of Statistics of the Communist Party of China released data on August 19, indicating that by July 2025, the unemployment rate for the urban labor force aged 16-24 in China (excluding students, hereinafter referred to as the 'youth unemployment rate') was 17.8%, an increase of 3.3 percentage points from June.
Netizens have been challenging official statistics by sharing their personal experiences, stating, 'It seems that the actual number is much higher than what is reported; are only those who have been laid off or optimised counted as unemployed?' 'I am currently employed, but I haven't received a salary for more than six months, and I am afraid to quit.' 'I am still working, but I will soon be unemployed.' 'I just lost my job today.'
(First published by People News) △
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