China studies job creation in new industries

Stabilizing employment to inject momentum amid economic downturn

Chinese policymakers have been talking with industry insiders to gauge job creation by emerging industries. These jobs could provide new momentum to the domestic economy.

Industry insiders said the talks could pave the way for stabilizing the job market. Recent massive layoffs in the internet industry have rattled Chinese citizens’ nerves ahead of the upcoming Spring Festival.

Officials of the National Development and Reform Commission (NDRC), China’s economic planner, have held discussions with representatives from industry associations including the Internet Society of China, China Software Industry Association, Artificial intelligence (AI) Industry Association and Beijing E-commerce Association.

They have also held talks with internet companies such as Didi Chuxing and Beike, the Securities Times reported on Thursday.

The meetings aimed to develop an in-depth understanding of those industries’ employment situations and wage levels, the report said.

The talks sent a clear signal of the Chinese government’s concern over worsening employment. During the Central Economic Work Conference held in December, policymakers listed maintaining employment stability as a priority among their economic tasks in 2019. But some feel uncertainty. A Beijing-based woman surnamed Wang who was laid off from Meitu days ago told the Global Times that she won’t have a happy New Year.

She said she could “stay jobless for some time” due to the macroeconomic downward pressure.

Wang said she lost her job because the selfie app developer is cutting support and marketing departments. These departments do not yield profits.

Meitu has laid off about 500 to 600 employees since September last year, according to Wang.

In addition to Meitu, the Global Times found that in January, at least seven internet and technological companies cut jobs. The companies include ride-hailing platform Didi Chuxing, telecom equipment maker Huawei, delivery platform Meituan Dianping and AI en- terprise iFlytek.

In one extreme case, Didi will cut 25 percent of its workforce, or about 3,000 people, news website 36kr.com reported on Wednesday. Didi declined to comment on the matter.

There are also hiring freezes. In the fourth quarter of 2018, postings for jobs in the internet industry declined 23 percent year-on-year, according to employment website Zhilian.

However, emerging industries like AI may provide new jobs amid an industrial upgrade, according to Li Chang’an, a professor at the Department of Public Economics at the University of International Business and Economics.

“Innovative industries’ contribution to employment will surge this year,” said Li.