In recent years, civil servants have been the preferred employment direction for graduates, followed by foreign and central enterprises, state-owned enterprises, and public institutions. These jobs have been described as having "iron rice bowls", relatively stable and without the risk of unemployment. However, after the recent news of the 50% layoff of the central enterprise Jinmao, Jinmao's "iron rice bowl" also began to falter. This article will focus on the reasons for Jinmao's layoffs, the impact on central enterprises, and the corresponding solutions.
Jinmao is the "national team" among the central enterprises, with a base camp in Beijing and a main market in North China. Over the years, Jinmao has won wide recognition in the Beijing market by launching the "Fu Series" community and adopting a unique anti-smog system. With the vigorous development of China's property market, Jinmao also expanded rapidly from 2010 to 2018, entering South China, Southeast China, Central China, Southwest China, Northwest and other regions, and developing projects in key cities such as Chengdu, Hangzhou, Shanghai, Suzhou, Nanjing, Xi'an, Changsha, etc., with annual sales soaring from 13 billion to 100 billion, becoming the 12th largest real estate company in the country. However, in 2018, Jinmao's management decided to hit 200 billion sales and focused on the South China market. Although there are large real estate companies such as Vanke, Evergrande, Country Garden, and R&F in South China, it is not easy for Jinmao to get a share of the pie in this region.
As a member of China's state-owned enterprises, Jinmao has always been considered to have an "iron rice bowl". However, the recent news that Jin Mao has laid off 50% of its workforce is shocking. As a representative of a state-owned enterprise, the chain reaction caused by Jinmao's layoffs cannot be ignored. Headquartered in Beijing, Jinmao is one of the region's leading real estate developers. In the early years, Jinmao launched the "Fu Series" community, which was favored by the public with its anti-smog system. With the vigorous development of China's property market, Jinmao has also rapidly expanded to South China, Southeast China, Central China, Southwest China, Northwest China and other regions, and has launched project development in key cities such as Chengdu, Hangzhou, Shanghai, Suzhou, Nanjing, Xi'an and Changsha. Sales soared from 13 billion to 100 billion, ranking the 12th largest real estate company in the country. However, it is not easy for Jin Mao to gain a foothold in the South China market, where there is already competition from large real estate companies such as Vanke, Evergrande, Country Garden and R&F. In order to occupy market share, Jin Mao had to grab land, but unfortunately, just as they were preparing to develop and sell, the real estate market cooled down, land declined, and corporate liabilities continued to increase. Jin Mao fell into the debt quagmire, the cooling of the real estate market made Jin Mao's profits decline significantly, from more than 10 billion the year before to 8 billion last year, and the net profit in the first half of this year was only 43.3 billion. Internal employees say it may not be profitable this year.
For many years, central SOEs have been considered to be protected and taken over. Central enterprises often have access to low-interest loans from banks, and their interest rates are much lower than those of private enterprises. However, it turns out that Jinmao, like some other state-owned enterprises, is unable to obtain new loans, and they enjoy the same treatment as private enterprises. On the other hand, it's a step forward. We often criticize SOEs for having unfair advantages in competing with private enterprises, such as cheap loans, tax incentives, and preferential policies. If private enterprises lose to central enterprises under fair conditions, there is nothing to say. The problem is that the "starting line" of state-owned enterprises is about 10 meters higher than that of private enterprises, so even if private enterprises work hard to develop, it is difficult to catch up with and surpass central enterprises. The predicament faced by central enterprises and the layoffs of Jinmao may become a sample for central enterprises, which is a warning to central enterprises, don't expect someone to cover you up. If you used to profit from the market, now if there is a problem, you need to solve it in a market-oriented way.
For many years, we have believed that having an "iron rice bowl" like a central enterprise means enjoying a series of special treatments, such as low-interest loans, tax incentives and policy preferences. This has also led to unfair competition between state-owned enterprises and private enterprises. However, recent developments have shown that state-owned enterprises are gradually being tested by the laws of the market. For example, Jinmao, like other state-owned enterprises, no longer enjoys special treatment and is unable to obtain new loans. This will help narrow the competitive gap between state-owned enterprises and private enterprises. However, it is also a huge challenge for SOEs. State-owned enterprises are no longer protected, and they no longer enjoy the treatment of "iron rice bowls". This means that if there is a problem with a state-owned enterprise, they can only solve it through market-oriented means. Jinmao's 50% layoff is just the beginning of this change, and many state-owned real estate companies have also begun to examine themselves and take similar measures. China Shipping did not get a piece of land this year, and instead began to clear its inventory;Huafa abolished the northern region and sent 40% of its employees to the society at one time. Neither graduates nor other employees can escape the laws of the market.
For graduates, state-owned enterprises used to be one of their ideal employers. Working in a state-owned enterprise means a stable income, reliable benefits, and relatively little work stress. However, the news of Jinmao's layoffs has made people rethink the advantages and risks of working at central enterprises. This also gives graduates the question of whether they still regard civil servants or state-owned enterprises as their preferred employment direction
The news of Jinmao's layoffs reminds us that even state-owned enterprises cannot escape market risks. The cooling of the real estate market had a significant impact on Jinmao's sales and profits, forcing it to defuse the crisis by laying off employees and selling assets. This also shows that Jinmao is not an isolated case among central enterprises, and other state-owned real estate companies are also facing similar problems.
For graduates, this series of changes should cause them to be alarmed. First of all, civil servants and state-owned enterprises are still relatively stable, but they are no longer as safe as they used to be. They are also exposed to market risks and economic cycles. Secondly, foreign companies, state-owned enterprises and public institutions also need to face market-oriented competition, and it is not easy for graduates to find these jobs. Therefore, graduates should look at their options from multiple perspectives and consider the prospects and potential risks of the industry. Mastering multiple skills and being resilient and adaptable will be their strengths in the job market.
Finally, graduates should also think about how to prepare and adapt to changes in the job market. This includes continuous learning and upskilling Xi, gaining a variety of experience and knowledge, and maintaining an adaptable mindset. Only then will they be able to remain competitive in the job market and find their dream job.
The news of Jinmao's layoffs has triggered a rethinking of the "iron rice bowl" of central enterprises. The traditional work of central enterprises no longer means lifelong stability and risk-free, and the wave of marketization has affected the field of central enterprises. For graduates, this means that they need to re-evaluate the advantages and risks of state-owned enterprises as an employment option. At the same time, they need to be prepared to respond to changes in the job market, continue to Xi learn and improve their skills, and maintain an adaptable mindset. Only then will they be able to find their dream job in the competitive job market.