Higher Wages, Fewer Jobs: The Changing Face of China’s Manufacturing Sector

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China’s manufacturing sector shows signs of post-pandemic recovery in 2024.

China’s manufacturing industry is showing signs of recovery following the Covid pandemic but the recovery isn’t uniform, according to an index of manufacturing activities released by Shanghai Jiao Tong University.

The sector, which has led the world for 14 years and contributes 30% to the global market, is facing new employment trends such as weak recruitment growth and an increase in jobs in the gig economy.

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China's manufacturing industry is recovering but unevenly, with wages rising but employment trends showing weak recruitment growth and an increase in gig jobs.
Gig workers, who are predominantly young and educated, make up a significant part of the workforce, especially during peak seasons, posing challenges to labor productivity and the social security system.
Despite a rise in exports, overall hiring is low, with large enterprises reducing recruitment and more production being moved overseas.

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Who’s Who

Guolian Securities Co. Ltd.: Guolian Securities Co. Ltd. reported a record number of overseas factories being built by Chinese manufacturers in 2023. This movement of production overseas contributes to the decline in domestic recruitment within China's manufacturing sector.

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What Happened When

2023：: Guolian Securities Co. Ltd. reported a record number of overseas factories being built by Chinese manufacturers.

May, 2024：: China witnessed a 7.6% growth in exports, but the manufacturing sector continued to experience historically low hiring.

Sunday, 2024-06-16：: Xiang Kuanhu, dean of the Lingpeng Institute of Industry and Innovation, commented on the recovery of China’s manufacturing sector at a forum in Beijing.

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