Here are some economic updates from China:
Struggling Bus Operator Hints at Local Money Woes
A state-owned bus operator in central China is suggesting a new career path for its employees: starting their own businesses.
The company shared the proposal in a notice as a way to tackle its financial challenges.
Here’s how it works:
For employees who’ve been working there for ten years or more, they can take a two-year break to try out entrepreneurship.
They’ll keep their job status, rank, and service length, but there won’t be regular pay, bonuses, or allowances.
Plus, some perks like the housing fund and annuity are off the table as well.
An employee in China’s state-owned transportation system called the measure a ‘disguised lay-off’,’ saying the company might be unable to pay salaries.
“There must be something wrong with the local fiscal situation. It’s true that there’s less bus ridership. With fewer jobs around, fewer people are commuting,” Xin, an employee at China’s State-Owned Transportation System, said.
Libraries Become Sanctuaries for China’s Unemployed
Another alarming indicator in China’s troubled economy?
The skyrocketing youth unemployment rates.
Over 11 million Chinese college grads entered the job market this year only to face a tough situation.
In June, the urban youth unemployment rate in China hit 21 percent.
Although officials stopped publishing jobless data in August, the impact is visible.
Videos shared online reveal a unique refuge for the unemployed in major cities like Beijing and Shanghai: public libraries.
These spaces have become sanctuaries for overburdened job seekers with free amenities like air conditioning, hot water, and charging outlets.
China’s Top 5 Banks Cut Deposit Rates
Beijing’s big five state-run banks are slashing deposit rates. It’s the latest move to help stabilize the Chinese economy as it grapples with losses.
The rate cuts are the third this year, according to the banks’ websites one-year deposit rates are down to 1.45 percent. While three-year rates now sit at 1.95 percent.
The current deposit rates are the lowest for Chinese banks since 1996. The goal is to reduce pressure on banks to keep investments profitable.
That’s as China’s economy grapples with slow growth and in part driven by severely indebted local governments and a real-estate sector in crisis. Experts predict even more measures to alleviate pressure and manage debt in the coming year.