Amid China’s deepening job shortage, local Internet platform companies are hiring at least 200 million people, a survey showed. Platform workers refer to workers who work for remuneration per case without signing a contract by finding jobs such as logistics delivery, food delivery, and cleaning through digital platforms. According to Hong Kong’s South China Morning Post (SCMP), China’s Xi’an Hill Capital said in a recent report that Chinese Internet platform companies employed at least 200 million full-time employees and gig workers. This shows that Internet companies are still creating significant employment in China’s 880 million working population amid deepening job shortages, with China’s unemployment rate for young people aged 16 to 24 hitting another all-time high of 21.3% in June, the SCMP explained.Due to Chinese authorities’ regulations and economic slowdown, a series of job cuts by Chinese big tech companies also led to an increase in platform workers. According to a report by Xi’an Hill Capital, truck drivers account for the largest proportion of platform workers, with 16.5 million people.
Truck drivers have played an important role in Chinese logistics for a long time, but the emergence of online platforms has greatly changed the way truckers receive work orders and improved work efficiency. More than 70% of Chinese truck drivers receive at least half of their cargo through more than 5,000 truck calling platforms nationwide. The second largest group of platform workers is vehicle call service drivers, with about 7 million people active.Car call service drivers have become one of the fastest-growing jobs in China over the past few years. Last year, the issuance of new driver’s licenses increased 32.6% in China, and this year, the daily issuance rate of new driver’s licenses increased five times from the previous year. In the meantime, some cities have stopped issuing operating permits to prevent the oversupply of vehicle call drivers, according to SCMP.The third-largest group of platform workers was delivery drivers, with 5 million people surveyed.
Throughout the COVID-19 pandemic, not only food delivery but also delivery items such as groceries, medicines, and flowers have increased in various ways. Amid serious job shortages, Chinese authorities are working hard to encourage Internet platform companies.Chinese Premier Li Chang held a meeting with platform company officials on the 12th, attended by officials from Meituan, a delivery and vehicle call application, Douin, a short video sharing site, and Aliwin, a cloud computing company. Prime Minister Lee said, “The platform economy has been well-timed in the big trend of the development of the times, creating new space for expanding demand and providing a new engine for innovation and development.”
It added that platform companies provided new channels for employment and start-ups and new support for public services, respectively, and that their positions and roles in the entire phase of development were increasingly prominent. At the same time, he said, “I hope platform companies will actively fulfill their social responsibilities, accelerate international competitiveness, drive development, create employment, and excel in international competition.”
TED PARK
US ASIA JOURNAL
