A report forecasts that this year, gig workers—including food delivery and ride-hailing drivers—will number 320 million in China, accounting for 44% of all employed individuals. As nearly half of the Chinese labor market shifts to flexible employment, significant impacts on consumption and social structures are anticipated.
The China New Employment Forms Research Center, part of the Beijing University of Economics and Business, recently published a report on "flexible workers" (灵活就业人员). This term encompasses a diverse group of non-traditional workers, including platform-based delivery personnel, ride-hailing drivers, influencers, freelancers, and part-time employees.
The report states, "These groups have already surpassed a critical mass, transitioning from 'complementary employment forms' to becoming a 'key component of employment.'" It also notes that while these workers can sustain their livelihoods, they face structural dilemmas that limit their growth, particularly regarding income stability and career development.
Following the report's release, a heated debate erupted on Chinese social media. Many analysts argue that the surge in flexible workers reflects economic slowdown and a decline in quality job opportunities. Factors such as a prolonged real estate slump, restructuring in major tech companies, and the instability of small banks have led to a decrease in stable jobs, pushing many middle-class workers into the gig economy involuntarily. Some netizens expressed a cynical view, stating, "Flexible employment is just flexible unemployment (灵活失业)."
In contrast, state media in China refuted the notion that flexible employment is merely a form of inadequate work. The Global Times argued that the expansion of flexible employment is a natural phenomenon resulting from the advent of the digital economy and rapid advancements in artificial intelligence (AI). It claimed that the rise of the platform economy has brought various forms of labor relations to the forefront, establishing new dynamics in the job market.
The publication also noted that flexible employment has evolved from temporary part-time jobs to new professional roles that require advanced skills, with wages for flexible workers showing a rapid upward trend.
Despite this, concerns are growing that the expansion of flexible employment could exacerbate the cycle of weak consumption and make it even harder to stimulate domestic demand, negatively impacting the Chinese economy.
Flexible workers often experience significant income volatility and frequently lack adequate protection from social safety nets such as pensions and health insurance. Given the high level of uncertainty about the future, they tend to prefer saving over spending, which could hinder the effectiveness of the Chinese government's efforts to boost domestic consumption.
The Singapore United Daily commented that the figure of 320 million reflects a structural change in Chinese society, transitioning from an "organized and stable employment society" to a "platform-based fragmented employment society."
The newspaper warned that this shift could lead to broader structural changes across the economy and society, including reduced consumption, delays in marriage and childbirth decisions, altered expectations for educational investments, stagnation in social mobility, and a slowdown in the expansion of the middle class.
In response to the growing population of flexible workers, the Chinese government has begun to formulate strategies. On June 18, the State Council announced the "15th Five-Year Employment Priority Strategy Implementation Plan (2026-2030)," outlining nine key tasks aimed at strengthening employment-friendly macroeconomic policies, promoting the healthy development of flexible and new employment forms, and establishing a monitoring and risk response system for employment.
* This article has been translated by AI.
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