BEIJING — Zhang Jinming, an employee at a Chinese state firm, has faced a 24% salary cut. To make up for it, he delivers food for three hours every night and on weekends, hoping to avoid awkward encounters with colleagues.

"Being a part-time delivery person while working for a state-owned enterprise isn't exactly considered respectable," said Zhang, whose real estate firm pays him 4,200 yuan (S$751) per month, down from 5,500 yuan.

As China's economy continues to grow, cracks are appearing beneath the surface. Contract and bill payment delays are rising, squeezing workers like Zhang through wage cuts and forcing them to take on additional work.

With falling profits and wages leading to shrinking tax revenues, state employers like Zhang's are under pressure to cut costs. The economic challenges faced by workers are largely driven by policies that prioritize exporters over consumers.

Economists have been urging Beijing to redirect support to domestically focused sectors or risk a slowdown in the second half of the year.

Max Zenglein, Asia-Pacific senior economist at the Conference Board of Asia, describes China as a "dual-speed economy" with strong industry and weak consumption, noting the interconnected nature of the two.

Hit to Incomes

Frank Huang, a teacher in Chongzuo, has not been paid for two to three months, waiting for authorities to provide the funds. Another teacher from Linquan is only receiving her basic salary, with the performance-based part consistently delayed.

Payment delays are growing quickly in sectors with a strong state presence, indicating liquidity stress and a prioritization of output over demand.

Spending Deferred

With incomes under pressure, Beijing is struggling to boost household consumption. Huang Tingting, a waitress, quit her job after business plummeted in April due to US-China trade tensions. Recruiters have reported a tougher job market this year compared to last.