The rapid adoption of artificial intelligence, or AI, is bringing major changes to China’s labor market. As AI and robots are used more widely across sectors, many workers are losing their jobs, while others fear losing theirs in the future.
Beijing-based computer programmer Fei Zhaojun’s experience is one example. His employer had asked whether AI would soon be able to take over coding work from humans. Two weeks later, Fei was among roughly 160 employees who lost their jobs.
Beyond computer programming, AI use is also growing in China in areas such as script writing, translation, media and various forms of physical labor, creating uncertainty over jobs and income for workers in those fields. The use of robots in food delivery is also on the rise, raising questions over the livelihoods of millions of delivery workers.
The Chinese government is encouraging wider use of artificial intelligence across the economy through its “AI Plus” initiative. The country’s plans through 2030 also emphasize the use of AI across various industries, with the government aiming to boost productivity and economic capacity through greater use of technology.
Some economists have warned, however, that while AI may boost productivity, it could also put significant pressure on employment — particularly in jobs limited to specific, narrow skill sets, which face a higher risk of layoffs.
China’s overall urban unemployment rate currently stands at around 5%. But unemployment among young people aged 16 to 24 is nearly three times that level. Given this backdrop, there is concern that the rapid spread of AI could further worsen the employment crisis facing young people.
Over the longer term, however, the use of AI and robots could bring some benefits for China. The country’s population is aging rapidly and its working-age population is shrinking, and experts believe automated technology could help fill future labor shortages.
Many workers in China also do not see AI purely as a threat. Some who have lost jobs are using AI to start new businesses or work independently, saying AI can not only replace human labor but also create new kinds of work opportunities.
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