AI Race Pushes White-Collar Workers in China Toward Low-Paid Jobs
Rapid AI developments in China are leaving white-collar workers facing layoffs, forcing many to turn to lower-paid physical jobs.
The rapid advancement of artificial intelligence technologies in China is leading young white-collar workers, such as research analysts and illustrators, to lose their jobs, while automation reshapes the labor market, forcing many workers to consider lower-paid manual roles.
Layoffs Due to Artificial Intelligence
Clare Zhang, who worked as a research analyst at a corporate consultancy firm in Beijing, was laid off because AI reduced the number of analysts companies needed.
Artificial intelligence was directly cited by the human resources department as the reason for losing her job, and it was noted that her former manager also struggled as clients brought research in-house using AI.
Court Rulings and Legal Status
Following the dismissal of a fintech employee in Hangzhou in May after refusing a pay cut and demotion, a Chinese court ruled that terminating an employee's employment contract on the grounds that AI would be cheaper is illegal.
Although this ruling came after certain cases, young white-collar workers in repetitive roles such as public information gathering and processing continue to remain under pressure from AI.
Shift Toward Physical Jobs
Stating that opportunities dwindled after sending dozens of applications, Zhang expressed that she is preparing to become a home organizer, babysitter, or supermarket packer because physically demanding jobs are harder to replace by AI.
Research Data and Sectoral Impact
A report published by ShanghaiTech University in July showed that 33.2 percent of 40.01 million job postings between January and April involved tasks with high exposure to artificial intelligence.
Entry and mid-level positions paying between 5,000 yuan and 8,000 yuan a month felt the greatest pressure, while fields such as manufacturing, healthcare, hands-on care, and equipment maintenance maintained their resilience.
Another PwC study in July revealed that AI application roles increased by about 90,000 and development positions grew by about 30,000 last year.
Adaptation Process in the Creative Sector
For Beijing-based illustrator Juno Zhu, artificial intelligence made constant adaptation mandatory, shifting from hand drawing to AI-assisted comic books and short-form dramas.
Zhu stated that AI eliminates mid-level workers who turn ideas into finished products, significantly reducing teams and timelines.