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Chinese province says OK for officials to hustle on the side in tepid economy

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BEIJING (Reuters) -As China’s sluggish economy pushes local authorities to cut salaries and bonuses, one southern province has told officials they can pursue side jobs, saying it is OK to be a part-time driver, novelist or fitness coach.

As long as there is no conflict of interest, one’s supervisor is aware, and there are no time-management issues, staff of government agencies can deliver food after work, earn royalties from novels, offer gym classes or even sell farm produce, according to the official newspaper of Hunan province.

But officials are not to use public resources to make a quick buck, which would be an abuse of one’s power for personal gain, Hunan Daily said in a post on its social media account this week.

“All this suggests government employees are going to have a hard time,” said a user on Chinese social media.

Financial hardship among Chinese households has risen in recent years as the world’s second-largest economy stumbled from its exit from three years of costly zero-COVID disruptions, with the impact felt even among government staff, once thought to hold unbreakable “iron rice bowl” jobs.

China’s fiscal revenue slowed sharply last year, up just 1.3% compared with a 6.4% jump in 2023, denting government coffers. Revenue from land auctions by local governments to developers slumped 16%, amid a protracted real estate downturn.

A few provincial authorities have cut bonuses and salaries. Some civil servants even say they have not been paid for months. Surviving on savings and borrowings, many are working multiple jobs on the side.

“My friend has hailed a ride and was picked up by a civil servant,” one Chinese social media user said.

Employment is a top priority for policymakers across all sectors. Earlier this week, President Xi Jinping said China must “focus on stabilising employment, enterprises, markets and expectations”.

On Wednesday, Beijing unveiled new measures to stabilise employment including expanded social insurance subsidies and special loans.

(Reporting by Ryan Woo and Qiaoyi Li; Editing by Alexandra Hudson)

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