Shanghai’s Devastation Shops Shut Down, Wages Collapse, People Sleeping on the Streets

Shanghai, the city once seen as China's unstoppable economic engine, is now unravelling at shocking speed. Streets that used to pulse with money and ambition are falling silent, while shops shut down one after another like dominoes. Behind the glossy skyline, a harsh reality is emerging. Businesses are collapsing, jobs are vanishing, and survival itself is becoming a struggle. What was once a symbol of limitless opportunity is now a warning sign of economic breakdown. And the most unsettling question is this. If Shanghai is falling, what comes next? The intersection of Shizang South Road and Lujiabang Road, once a highly sought-after shop location, is now mostly empty. It is close to Shanghai Red House Hospital, which is not a bad location. Is the commercial sector really this greedy these days? Three years ago, this spot required a transfer fee of 300,000 yuan. The one next door cost 100,000 yuan with staff and a base salary. But now, no fees are needed. The rent has plummeted to just over 10,000 yuan. And yet, it has been vacant for a long time. Shanghai, once China's most prosperous economic city, is now caught in a vicious cycle of unemployment, business closures, collapsing rents, and sluggish consumption. Whether you are a business owner, an employee, or even a tourist, you can feel the city's fading vitality. The Chinese people, no longer enjoying the benefits of 40 years of reform and opening up, are now witnessing the smoke of change. The anger has dissipated, and I helplessly watch this Great Depression descend. I am currently in the Yangtze River International Business District on Yinggao West Road in Baoshan District, Shanghai. Take a look. How many of these shops are open? The clothing stores are closed, their doors tightly shut. There is a travel agency here that is still open, but the amusement park is closed. Even the elevators to the upper floors are shut down, meaning those floors are completely empty. Look at this crayfish restaurant. It is empty and probably about to close. This Tustin burger shop is also closed, with no one inside. At 7.30pm, the Shanghai International Studies Centre Plaza is surprisingly deserted. I just came back earlier, and although the road was once full of cars, that is no longer the case. This is what Shanghai has become. The coconut chicken restaurant has gone out of business, Yangguofu Malatang has gone out of business, and Langsi restaurant has also shut down. Today, I came to Fuli Canal No. 10. I look around, many shops on the ground floor are closed. I lived here before, and many stores have already shut down. Looking at the surrounding environment, I also visited a nearby shopping plaza, and almost all the stores there have collapsed. Over there, many shops are closed as well. This is Xichangjiang Community. Everyone look, this place used to be quite convenient, but now traffic has declined. There are even power outages. People are dragging their luggage away. The buses are packed with people from the same hometown, carrying bags and packages, taking everything they can back home. The once-bustling city of Shanghai is now experiencing an unprecedented consumer winter. Numerous online videos show that the once-vibrant city is now eerily quiet, with few shoppers and many closed stores. Unsum netizens reported that many shops in Lujiazui are closed, and large shopping malls are practically empty, with almost no businesses operating. One large shopping mall on Danning Road in Jinghan District, except for a billiards hall still operating in the basement, is completely closed. The pool hall manager said the hall is also about to shut down. Shen Yun Road Pedestrian Street in Chuanxia Town, Pudong New Area, Shanghai, used to be very popular, with heavy foot traffic. Who would have thought that in just a few years, this street would become so deserted? Now, apart from a few shops at both ends, most stores have been vacant for a long time. I came to Shanghai alone with 1,600 yuan, thinking that as long as I worked hard, I would succeed. But I have already spent 1,000 yuan and still have not found a job. But the remaining 600 yuan is not enough to support me, and I cannot go home. I do not regret the hardship, but I regret being so impulsive and coming here without thinking. Now I am in a dilemma, full of bitterness. I am not working, just eating the bare minimum. Today, I only ate an egg pancake that cost 3 yuan. The less I spend, the more upset I feel. The cheapest rental in Shanghai now is a small unit with two rooms upstairs and two rooms downstairs, about 100 yuan per room, 400 yuan in total. There are even places with staircases inside tiny units. Unbelievable, yet people still live here. Overnight, the Yangtze River Delta region has changed dramatically. Shanghai is saturated, Kunshan is saturated, and Suzhou is saturated. Only those living here can understand how it feels. Many people have been running around Shanghai for days looking for work. Some say it is better to go to a regular company, even if it means going far away. Many are exhausted and want to change cities. But right now, no matter which city, it feels saturated. Do not waste your time. I went through so much effort running a restaurant, but by noon there was not a single table. I used high-quality meat, expensive noodles, and fresh vegetables, yet I still could not make it work. I feel like I have failed completely in the restaurant business. I invested 400,000 to 500,000 yuan, and today there was not a single customer. It is incredibly frustrating. The ambience is fine, the food is good, but there is no one here. What is going wrong? The current job market is truly surreal. A friend told me their company claimed it was not hiring anymore, yet management insisted on recruiting people at schools using both persuasion and pressure. At the same time, they had already laid off many long-term employees. Companies now hire fresh graduates at minimum wage, around 2,400 yuan, while cutting experienced workers to save costs. Contracts are short and layoffs happen quickly. Even then, companies are struggling to survive. With such low wages, it is barely enough for basic living expenses. I walked around the streets, and there was not a single person. At 1 p.m., the streets were completely empty. With rents exceeding 100,000 yuan, how can businesses survive? Shanghai today has lost its former vibrancy. What happened to Shanghai? Where did everyone go? Official Chinese data shows that the urban surveyed unemployment rate rose to 5.3% in early 2026, higher than market expectations. However, analysts point out that the data masks the true situation. Only those actively seeking work are counted as unemployed. Many graduates preparing for exams or studying abroad are excluded. Migrant workers, who often return to rural areas when unemployed, are also not included. New flexible workers, such as ride-hailing drivers, delivery riders, and freelancers, are counted as employed even if their income is unstable. By 2025, flexible workers in China had reached around 280 million. A frightening trend has emerged. Many companies in Shanghai now offer only around 4,000 yuan per month for new hires, compared to over 8,000 yuan previously. Many graduates are forced to accept these low wages. I have worked in the jewelry industry for six years. With rising costs and a worsening economic environment, I stayed because I loved it. But now, it feels like persistence no longer makes sense. This commercial street should have heavy foot traffic, yet the closure rate has reached 50%. Downstairs, many restaurants have changed owners repeatedly, and now most are empty. Doing business has become extremely difficult. Oh, this is Guangtian Street in Suzhou. 30 years ago, it was the most prosperous commercial area in the city. Now, there are barely any tourists. Even long-established brands have shut down. Business is so difficult that people with health issues cannot handle it, and even young or old people struggle. Running a physical business today is incredibly hard. Many shops that once thrived— fruit stores, bun shops, and famous food chains— have all closed down. Entire shopping streets and malls now stand empty. At night, I return to a hot pot restaurant. Looking at the empty street and empty mall, there is not a single customer in sight. I thought about standing outside to attract customers, but no one came. By late evening, total sales were only 25 yuan, barely enough to cover the stall fee. It is impossible to make money like this. And many business owners say the economy is deeply depressed across cities of all sizes in China. Even when there are people, consumption is weak. Restaurants and retail shops are struggling to survive. In agricultural markets, the situation is just as bleak. Large quantities of tangerines remain unsold and are left to rot. Even at major wholesale markets, there are no buyers. Sellers are desperate, dumping entire truckloads of produce at extremely low prices, yet still cannot sell. People ask, where has everyone gone? In cities like Foshan, some people cannot afford rent and are forced to sleep under bridges or in tents under overpasses. Survival has become extremely difficult. Many young people are already returning home early in the year, unable to find work. Factories no longer need workers, and uncertainty is everywhere.