Weakening job market forces people to use Communist Party centres to hide unemployment in China: Report

Colombo: The weakening job market in China is forcing a rising number of unemployed people to seek refuge in free public spaces, as they find jobs and in some cases, hide about their unemployment from family members, a report has claimed.

Communist Party community service centres in several places in China, which once were used mostly for local administrative activities, are now being used by unemployed people as makeshift workplaces. The centres, which have free internet access, air conditioning, power outlets, and quiet workplaces, have become an alternative to cafes and paid co-working spaces for people who are not able to afford daily expenses after losing their jobs, according to a report in Sri Lanka-based Daily Mirror.

The pattern demonstrates the increasing strain in China’s white-collar labour market, where searching for jobs has become common amid slowing economic growth, corporate cost-cutting and the increasing use of Artificial Intelligence (AI) in sectors like marketing, administration and other office-based functions.

The growing dependence on these centres showcases the financial strain faced by urban workers in China. Free public facilities have become an increasingly practical option in China for people who do not have a steady income, according to the report.

In June, a report claimed that Northeast China, which was once seen as the nation’s powerhouse of heavy industry, is facing shrinking opportunities, vanishing communities, and a deep sense of uncertainty.

“Dalian, emblematic of this decline, reflects the broader struggles of a society caught between past promises and present realities. Factories that once symbolised prosperity now stand silent, while families wrestle with financial strain and fading hope. This unfolding crisis is more than an economic downturn; it is a human story of resilience tested against relentless structural and demographic challenges,” the report in Japan Forward said.

“The situation in Dalian and across northeast China has reached a breaking point. Once a proud industrial hub, the region is now filled with unemployed, bankrupt, indebted, and depressed citizens who struggle to afford basic medical treatment. Making money has become painfully difficult, and the streets are dominated by middle-aged and elderly residents,” it added.

Young people are either shifting to south China or have given up hope of finding opportunities locally. Social hostility is increasing, with incidents like fights occurring over cutting in line, demonstrating the growing frustration and anxiety of residents, it noted.

Earlier, the northeast was the most industrialised region of China, politically important and tightly linked to the planned economy. However, it fell behind after reform and opening up. The mindset shaped by years of rigid planning continued, influencing governance and society, according to the Japan Forward report. Family planning policies were implemented strictly in northeast China, resulting in demographic decline. Rampant corruption and political failures also impacted the region, resulting in the downfall of many officials and undermining people’s trust.

“Northeast China exemplifies the collapse of an industrial base under rigid political control, failed reforms, demographic decline, and economic stagnation. Once a proud industrial hub, it now struggles with unemployment, migration, ageing, and hopelessness. The region’s present may foreshadow the future of the entire country if systemic issues remain unresolved,” the report said.

IANS