China’s economy has continued to shrink significantly in recent months. According to SecretChina, experts say that the economic downturn in China is an indisputable fact. Many industries and businesses have laid off thousands of employees to cut costs. The wave of unemployment is rampant. This makes many people afraid of repeating the history of 1998.

According to the Caixin survey, an index for factory jobs dived to the lowest in 27 months. Companies attributed the staff shedding to cost-cutting and subdued sales.

Xu 徐, the general manager of a furniture maker in Jiangsu province, said in an interview, ‘We’ve shut down at least 10% of the factories in Jiangsu so far, and more than 80% of employees have been laid off.’

In May, China’s tech giants see a new wave of job cuts as Covid lockdowns hurt the economy. For example, Alibaba shed nearly 10,000 employees during the three months ended June 30.

In addition, nearly 11 million university students in mainland China who have just graduated have difficulty finding a job. According to official data released by China’s government, the unemployment rate of urban youth aged 16-24 climbed to 19.3% in June.

Under the actual situation, many people are concerned that the history of 1998 is repeating itself.

In 1998, a catastrophic wave of unemployment swept across entire China, especially in some industrial cities in the continent’s north. China’s government has planned to shut down and transfer many state-owned enterprises with poor performance. The number of laid-offs almost doubled every year. The growth rate was the highest in 1998, totaling 17.14 million. The wave lasted until 2001.

The wave of layoffs has caused a lot of people to struggle. They have no income and have lost their means for living.

At this time, many worry that China’s continued economic downturn will again lead to a wave of layoffs. What is concerning is that a large-scale unemployment wave has occurred in China, and its serious consequences could be far more significant than in 1998.

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