Thread by @JiangJiang43

The number of consumers in #China has reached its peak, & consumption capacity is declining. These two factors that affect market growth are forcing a slowdown in employment related to the internet economy. gingerriver.com/p/the-future-o…

According to data from China's Ministry of Transport, as of April 30 2023, a total of 309 ride-hailing companies had obtained operating licenses, and a total of 5.41 million ride-hailing driver licenses had been issued across the country.

In contrast, those two figures stood at merely 207 and 2.55 million, respectively, on Oct. 31 2022. That counts as an increase of 49.2 percent and 112.4 percent, respectively, in less than three years.

But the surge in ride-hailing drivers is by no means good news for those who want to join the industry. Data show that the average daily number of orders received by ride-hailing drivers has now decreased from 23.3 orders per car in 2020 to less than 11 orders per car.

This means that while the overall market has barely expanded. It now has to cope with an ever-larger number of people who seek shelter in the industry, resulting in a huge drop in the average income of drivers.

It's not just ride-hailing drivers that are experiencing such embarrassment. The same thing is happening to other 2 professions among top 3 retreats for migrant workers:couriers & food delivery workers, who faced with cruel reality of increased staffing & stagnant income growth

The turning point was 2013, when the number of ppl employed in China's secondary sector saw a historic decline. In the following 2 years, the total number of ppl employed in China & the number of ppl employed in primary & secondary industries all fell,

while only the tertiary sector bucked the trend and became the most dynamic part of the job market.

China's population has reached its peak. By the end of 2022, the national population decreased by 850,000 compared to the previous year, a negative growth for the first time in decades. Additionally, there is little possibility of a short-term population rebound.

The number of Internet users has stretched to its limit. According to official data in March 2023, as of December 2022, the number of netizens in China reached 1.067 billion, with an internet penetration rate of 75.6 percent.

In 2022, the volume and revenue of China's express delivery services experienced the lowest growth rate recorded, both below 3 percent. As a result, the per capita usage and expenditure on express delivery services in 2022 remained stagnant.

It is worth noting that in 2022, after experiencing years of decline, the number of people employed in China's primary industry saw an increase for the first time.

This may be attributed to the impact of the COVID pandemic in 2022. However, the significant outflow of rural population has led to serious hollowing out of rural areas, posing significant challenges to China's agriculture such as population aging & a shrinking farming population

To address these issues, it is essential to accelerate the process of agricultural mechanization, intensification, and intelligent production, which requires an influx of fresh and young labor to enhance agricultural productivity and stabilize output.

A significant number of laborers are leaving factories in China, driving rapid industrialization, mechanization, and automation in China's manufacturing sector. In many factories, the repetitive tasks on assembly lines can now be replaced by robots and mechanical arms.

However, skilled workers cannot be immediately replaced by automation, creating a significant skill gap. In the industrial sector, the ideal talent structure is 1 scientist, 10 engineers, and 100 skilled workers.

In #Japan, highly skilled technicians account for around 40 percent of the entire industrial workforce, while in Germany, the figure reaches as high as 50 percent. In #China, this proportion is only about 5 percent.

To maintain the "job freedom" of migrant workers, there is only one core direction in all sectors: skill upgrading. Just as the first wave of labor migration was based on the universalization of compulsory education and the improvement of cultural literacy, the second wave of

labor migration was driven by the popularization of Internet technology skills.