The gig economy in China is booming, but at what cost to its workers? Millions are trapped in a cycle of precarious employment, and it’s a growing crisis that demands attention. Every day, in the bustling open-air labor market of Datang, Guangzhou, workers like Zhou navigate a sea of uncertainty, hoping to secure a job that pays enough to survive. Last month, Zhou, who prefers to keep his full name private, sifted through a crowd gathered around a clothing factory manager. He examined a half-finished lace top, weighed it in his hands, and shook his head—the pay was simply too low for such intricate work. This scene is a microcosm of a much larger issue: China’s shift toward flexible labor practices is leaving millions of gig workers vulnerable and undervalued.
Zhou is one of at least 200 million people in China’s gig economy, a sprawling, informal sector that includes delivery drivers, construction workers, and factory laborers. While China’s fast fashion industry has long relied on day laborers like Zhou, experts warn that the increasing use of short-term labor is eroding the country’s human capital and putting workers at risk. But here’s where it gets controversial: Is this flexibility a necessary evil for economic growth, or a systemic failure that exploits the most vulnerable?
‘We’re a new generation of workers with a new generation of thinking,’ Zhou explains. In his 30s, with a wiry frame and a mustache, he moved to Guangzhou from Hubei eight years ago. Despite the flexibility, he often works 12-hour days, seven days a week. ‘We wake up, work, finish work, sleep—it’s a two-point line,’ he says. This relentless cycle highlights the harsh reality of gig work: flexibility often comes at the cost of stability and well-being.
Officially, Chinese companies are allowed to employ only 10% of their workforce on a short-term basis. However, analysts reveal that the proportion of temporary workers in manufacturing has been creeping up, making life increasingly precarious for a vast segment of the workforce. And this is the part most people miss: This trend not only undermines workers’ ability to learn new skills but also threatens long-term economic growth.
A 2024 study by Peking University’s Zhang Dandan estimated that short-term workers in manufacturing had reached approximately 40 million, or about 31% of the total workforce. This marks a significant upward trend from 2017, when surveys from five provinces showed the proportion at 20%. In contrast, many Chinese factory workers are employed in long-term, full-time roles, enjoying benefits like workplace insurance, protection from unfair dismissal, and retirement plans. Temporary workers, on the other hand, often lack these protections, even though they may earn higher hourly wages in the short term.
Factory managers favor temporary workers for their flexibility and lower costs, as they reduce expenses related to training and benefits. For workers, this can mean greater choice and higher pay, especially with bonuses for completing short stints. However, it also leaves them exposed. Most day laborers and agency workers lack contracts or insurance and are confined to low-skilled tasks, such as final electronics assembly.
Here’s the kicker: Analysts warn that funneling workers into tedious, low-skill jobs with no training or advancement opportunities could create a future skills deficit and stifle social mobility. ‘Contract labor becomes a convenient way to maintain flexibility without long-term commitments, compensation risks, or firing difficulties,’ says Dmitri Kessler, founder of the Economic Rights Institute. Kessler adds that in electronics manufacturing, short-term laborers are often quickly replaced if injured, a practice he calls ‘extremely problematic.’
The allure of higher hourly wages for temporary roles often traps workers in jobs with little prospect of growth, fostering a sense of detachment from their employers. ‘This dependence on base-level employment impacts worker productivity,’ Kessler notes. Sociologist Jenny Chan from Hong Kong Polytechnic University points out that some factories employ up to 70% temporary workers during peak seasons, though exact numbers are hard to pin down. ‘This is a more precarious, fluid form of labor,’ she says.
The rise in temporary employment began around 2008, following the global financial crisis and China’s stricter labor laws, which offered greater protections to full-time workers. As government scrutiny increased, some factories turned to vocational schools for trainees or interns, a practice that has since gone underground. ‘They’ve continued this practice, just made it harder to identify,’ Chan explains.
Mo, a temporary garment factory worker in his 30s, shares his experience: ‘You just make yourself OK from one day to the next. But if you want to get married, have a family, you definitely can’t think like this.’ Flipping through yellow job posters in Datang, he reflects, ‘Doing this kind of work is a rotten state of affairs.’
So, what do you think? Is China’s gig economy a necessary step toward modernization, or a dangerous exploitation of its workforce? Let’s start the conversation—share your thoughts in the comments below.
