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Will large monopoly central enterprises such as tobacco and power grids maintain high treatment in the future?

author:Mizuki Laboratory NERO

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In today's society, the employment situation is becoming more and more severe, coupled with the flood of talents and the depreciation of academic qualifications, many graduates have to commit themselves to finding a way out. In this case, giants in state-owned enterprises such as tobacco and power grids, and large industry monopolies, can not only provide stable jobs, but also pay relatively well.

However, there are also many people who are pessimistic about the cost-effectiveness of future employment in tobacco and power grids, especially those in the industry, who often express the treatment of tobacco and power grids based on personal experience.

So will tobacco and power grids maintain higher treatment in the future? Brother Nero will analyze it today.

tobacco

As a T0 central state-owned enterprise, tobacco has always been a popular employment unit. Taking the Hunan Tobacco Bureau in 2023 as an example, its recruitment situation is as follows:

Will large monopoly central enterprises such as tobacco and power grids maintain high treatment in the future?

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As can be seen from the figure above, the graduates recruited by the tobacco system come from universities of all levels, from 985 universities such as Wuhan University and Hunan University, to some ordinary double-non-resident universities, all of which are admitted, and even international students from universities outside the mainland such as the University of Hong Kong have joined the company, which is enough to see the popularity of tobacco in the job market.

The main reason for the popularity of the tobacco industry is the high salary. The high treatment of tobacco is due to the large consumer group and the high profits.

Although the tobacco industry can increase its profit per unit by raising the price of cigarettes, prices cannot rise indefinitely. Although there is a monopoly in the tobacco industry, it still needs to follow the laws of the market economy. If a pack of cigarettes is arbitrarily priced at hundreds of dollars, then the vast majority of consumers will not be able to afford it, which will affect profits.

In addition, the tobacco industry is not a complete monopoly, for example, alternatives such as e-cigarettes exist on the market. For cigarette consumers, if they can't afford traditional cigarettes, they can opt for e-cigarettes or other alternatives, or even turn to cheap smuggled cigarettes or homemade cigarettes.

Therefore, tobacco can choose to increase the price of a single product, but the traditional tobacco market is a stock market, which means that increasing the price may lead to a certain number of customer losses. While profits may be preserved in the short term, profits may decline in the long term.

As a result, tobacco cannot be significantly increased in price to make more profits, which also leads to restrictions on the treatment of employees in the tobacco system, which cannot maintain a high level of quality, and may even be reduced due to factors such as rising raw material prices and inflation.

Power grid

The characteristics of the power grid in terms of employment are different from those of tobacco. Due to the large number of jobs in demand, tobacco recruits relatively many majors, while the power grid has relatively few recruitment majors and more restrictions due to high professional barriers, mainly electrical majors, and a small number of non-electrical majors such as computer, communications, finance, and law. Taking State Grid Hunan Electric Power Company in 2023 as an example, its recruitment situation is as follows:

Will large monopoly central enterprises such as tobacco and power grids maintain high treatment in the future?

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It can be seen that the level of education of graduates recruited by the power grid is better than that of tobacco, and there are also 985 universities from Hunan University, Huazhong University of Science and Technology, Wuhan University, etc., to the source of students from ordinary double non-African universities, and even top universities such as Peking University also have students, and the number of international students is also significantly more, including Australia, the United Kingdom, Singapore and other places have students.

The power grid is also a monopoly industry and is irreplaceable. However, its comprehensive cost is quite high, including the initial equipment and facility investment cost and the later operation and maintenance cost, both of which are very expensive.

In densely populated and economically prosperous areas, the grid tends to be profitable, but in sparsely populated and economically underdeveloped areas, the grid can be loss-making.

This model is usually not problematic during periods of economic growth, but it can become complicated during recessions. As the population declines and young people flock to better-than-performing cities, grid operations in lagging regions may face severe deficits and dramatically increase costs.

In this case, in order to maintain a good operating situation, it is a very good option to increase the price of electricity. Electricity is a necessity of life, and there is no substitute for it, so even if the price of electricity is raised, people will have to pay for it. However, as an important part of the national economy and people's livelihood, the price of electricity will certainly not be too high, and even under the guidance of national policies, the price of electricity has been stable for decades.

If the price of electricity does not increase, the profit of the grid will always be limited, which will also lead to the fact that the remuneration of grid employees will not be higher and higher, and it will even be difficult to maintain the current level. As the construction and operating costs of the power grid increase in the future, the treatment of employees will even be reduced.

Therefore, Brother Nero is pessimistic about whether the treatment of tobacco and power grids will be improved in the future, thinking that it is a little difficult, and it is fortunate that it will not be reduced. However, as a large monopoly, the treatment will still maintain a relatively high level in society, and the stability of work is incomparable to that of private enterprises.

Brother Nero has collected the treatment of the power grid in some areas, you can refer to it:

Will large monopoly central enterprises such as tobacco and power grids maintain high treatment in the future?

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