[Global Focus] The 'Factory of the World' Rejecting Blue-Collar Labor

Anti-work Trend in Emerging Markets of Chindia
China's Backlash Against Traditional Labor Forms
Some Opt for Short-term Part-time or Irregular Work, or Even Give Up Job Seeking

[Asia Economy Reporter Kim Hyun-jung] The emerging markets of 'Chindia' (China and India), once hailed as future economic powerhouses leading the global economy, are now witnessing a strong anti-work movement characteristic of developing countries. In these nations, which not only have dense manufacturing factories but also supply labor to the world based on their massive populations, a backlash against traditional labor forms is growing. This has led to a spread of tendencies where people prefer part-time or irregular work or even give up on job seeking altogether.

The 21st-century 'anti-work' movement, which originated in the massive American community Reddit, initially unfolded through sharing photos of resignation letters or exposing workplace issues. Over recent years, young generations who witnessed soaring asset prices in real estate and stocks have lost motivation to work and have even withdrawn from the labor market entirely. Although this labor refusal phenomenon in the U.S. differs in nature, the anti-work movement emerging in China and India is becoming a social issue concerning enough to worry their governments.

◆Expansion of Blue-collar Labor Refusal in China and India= In China, the so-called 'Tangping (?平, lying flat) ideology' is spreading. Tangping refers to a lifestyle attitude of living simply and comfortably, even if less affluent.

This has resulted in a preference for platform-based 'gig work' (temporary jobs) over stable manufacturing factory jobs, despite the income being somewhat unstable. Eventually, Zhang Xinghai, a representative at the National People's Congress and chairman of the Xiaokang Group, publicly urged, "We should encourage young people to become industrial workers rather than food delivery workers," and the government designated 'Tangping' as a banned term and began crackdowns.

However, as improvements in wages and working hours in manufacturing workplaces remain distant, the anti-work trend among young people has become increasingly difficult to reverse. The Hong Kong South China Morning Post (SCMP) recently reported, "Factory work is unattractive to young migrant workers in China," adding, "Even without considering new opportunities and the boom in urban delivery services, traditional labor forms demand too much." According to the report, delivery workers in major Chinese cities can earn about 15,000 yuan (approximately 2.85 million KRW) per month, which is double the salary of factory workers.

According to Chinese economist Professor Zhuang Bo, the reluctance to work in factories is more widespread among migrant groups from rural areas. Professor Zhuang explained, "Recently, young migrant workers prefer to stay in cities and consider working as restaurant waiters better and more attractive than factory labor."

India, with a labor force of about 900 million, also has a significant portion of its population in a 'no-work' state. Bloomberg recently cited data from Mumbai-based private research institute the Centre for Monitoring Indian Economy (CMIE), reporting that India's labor participation rate, which was around 46% in 2017, has plummeted to 40% as of 2022. During the same period, 21 million women left the labor market, resulting in only 9% of adult women currently being employed or seeking employment.

The report analyzed, "As India's job problem worsens, many are not even seeking jobs," calling it "a grim omen for the world's fastest-growing economy."

Labor Participation Rate in India Plummets Over Five Years
Population Giant Worn Out by Fierce Competition
The 'Middle-Income Trap' Preventing Advancement to Developed Nation Status Despite Economic Growth

◆Polarization and Soaring Competition... The Middle-Income Trap= The refusal of blue-collar labor is a typical social phenomenon in middle-income countries striving to become developed nations.

Most low-income countries rapidly grow into middle-income countries by relying on low-skilled, low-wage laborers like China and India, but in developed countries, economic growth is driven by highly educated, high-wage workers. At the middle-income stage, it is high-skilled human capital, not simple labor, that elevates a country to developed status. However, most countries fail to escape the middle-income trap after repeated polarization in education and living standards. According to Scott Rozelle, a professor at Stanford University, among 101 middle-income countries in 1960, only 13?including South Korea, Taiwan, and Israel?had become high-income countries by 2008.

Kunal Kundu, an economist at Soci?t? G?n?rale, pointed to India's situation, forecasting, "The K-shaped growth path will exacerbate inequality, causing India to fall into the 'middle-income trap' (a phenomenon where developing countries experience slowed economic growth or remain stuck at middle-income levels due to lack of growth drivers)."

Both countries' inherent status as 'population giants' also contributes to the avoidance of blue-collar labor due to excessive competition to become highly educated and high-income earners. According to Bloomberg, about two-thirds of India's population is in the working-age group (15-64 years), leading to fierce competition for good jobs. Even gaining admission to the top engineering colleges in India is considered a 'futile effort' as it does not guarantee stable employment. According to a 2020 McKinsey report, to keep pace with the youth population surge, India needs to create at least 90 million new non-agricultural jobs by 2030, requiring an annual GDP growth rate of 8-8.5%.

Most unemployed Indians are students or women (housewives), who lag behind in acquiring marketable skills due to rapid technological advancement, the report assessed. Women constitute 49% of India's population but contribute only about 18% to economic productivity, roughly half the global average.

To address women's employment issues, India raised the minimum marriage age to 21, and the State Bank of India (SBI) released a report suggesting this measure could improve women's higher education and career conditions, thereby increasing labor participation rates.

China faces similar challenges. This year, the number of university graduates reached 10.76 million, surpassing 10 million for the first time. Including those who have graduated but have yet to find jobs?so-called 'retesters'?the number of job seekers is estimated to reach 16 million. According to Chinese job site Zhaopin, the employment rate of Chinese university graduates during this year's job season (March-April) was 46.7%, down 16.1 percentage points from last year's 62.8%.

The average monthly salary for employed graduates was 6,507 yuan (approximately 1.26 million KRW), a 12% decrease from last year, and less than half the estimated average monthly salary of delivery workers in major cities, according to SCMP. Moreover, due to the third consecutive year of COVID-19, jobs with good employment conditions in manufacturing companies have also decreased.

This content was produced with the assistance of AI translation services.