China’s economy has shown signs of resilience amid global uncertainty, with official figures touting a stable GDP growth of 4.8% in the first half of 2025. But beneath the surface of these numbers lies a quieter, grittier reality millions of Chinese workers are navigating shrinking paychecks, job insecurity, and a rising dependence on gig work to make ends meet.
From the glittering towers of Shanghai to the industrial heartlands of Chengdu, employees across sectors are facing the same dilemma: work harder for less. A growing number of white-collar workers have seen salary reductions or frozen wages, while blue-collar laborers contend with unpredictable hours and an oversaturated job market.
The “Involution” Economy
“I took a 20% pay cut this year, and my workload has doubled,” said Li Wei, a 31-year-old marketing manager in Guangzhou, who moonlights as a livestream host on weekends. “My full-time job isn’t enough anymore. Everyone I know is doing a side hustle.”
This shift reflects what many Chinese citizens now call neijuan, or involution — a term describing the competitive, exhausting cycle of diminishing returns in work and life. Once aspirational, white-collar roles in tech, education, and media are now seen as unstable, with layoffs, demotions, and dwindling bonuses becoming increasingly common.
A Boom in the Gig Economy
In response, side gigs from e-commerce to food delivery and social media content creation — are booming. According to data from the Ministry of Human Resources and Social Security, over 200 million people, nearly one-third of China’s working population, are now engaged in flexible or part-time work.
For some, it’s about passion or independence. For most, it’s survival.
Zhang Hui, a 27-year-old former schoolteacher in Chongqing, now drives for Didi during the day and sells homemade snacks on Douyin (TikTok’s Chinese counterpart) at night. “I didn’t choose this life. It chose me,” she said. “Rent, family obligations, healthcare everything costs more. A stable job is no longer enough.”
Wage Pressures and Private Sector Woes
The backdrop to this trend is a cooling private sector. After years of tech crackdowns, real estate turbulence, and uneven post-COVID recovery, many firms have tightened their belts. A recent report by Tsinghua University found that average wages in private enterprises fell by 6.4% year-over-year in Q2 2025, the steepest decline in a decade.
Meanwhile, fresh graduates once confident of climbing the corporate ladder are entering the workforce with few options. This year, nearly 12 million college graduates are expected to compete for a shrinking pool of high-paying jobs.
A Paradox of Strength and Struggle
This economic duality presents a paradox. On one hand, China remains a global powerhouse, outpacing many Western economies in growth and investment. On the other, its people are working longer, earning less, and hustling harder than ever.
“The macro indicators don’t fully capture household stress,” said Chen Yong, an economist at Peking University. “There’s resilience, yes, but also stagnation especially in consumption and personal income.”
Looking Ahead
The Chinese government has announced new measures to support small businesses and encourage job creation, including tax incentives and subsidies. But for many ordinary citizens, the response feels slow and insufficient.
“I don’t care what the GDP is,” said Li Wei. “What matters is whether I can pay my mortgage next month and right now, I’m not so sure.”