Layoffs and exits as firms in China teeter under zero-COVID pressure

Layoffs and exits as firms in China teeter under zero-COVID pressure

BEIJING: Fiona Shi lost her job twice during the pandemic-first, in 2020 when COVID ravaged the travel industry, and then this year as China’s strict virus controls hammered businesses in the world’s number two economy. China is the last major economy welded to a zero-COVID strategy-putting firms and workers at risk of snap lockdowns, freezing activity in the services sector and tangling supply chains crucial for factories to sell their goods.

As the country battles its worst outbreak since 2020, its urban jobless rate has surged to the highest level in two years and the pain is being felt by both blue- and white-collar workers. “Many places say they are not recruiting people aged above 35,” said Shi, 38, who pointed to the difficulty of returning to entry-level positions after managerial roles. She worked in a management role in the hospitality industry in 2020 when the coronavirus brought nearly all travel to a halt as governments imposed social distancing and movement restrictions.

Two years later, the Beijinger found herself in the same position after losing her job at a multinational firm. “The pandemic has also made it harder… many places have frozen headcounts,” she told AFP. “I’m really anxious.” Months of unpredictable