China’s AI push raises fears of job losses, hits young workers the hardest

New Delhi: China’s rapid adoption of artificial intelligence is reshaping workplaces across industries, boosting productivity but also intensifying concerns about job displacement, particularly among young workers, a report has said.

As Beijing accelerates efforts to integrate AI into nearly every sector of the economy, employees in fields ranging from software development to delivery services are increasingly feeling the impact, according to Quartz report.

Among them is Beijing-based programmer Fei Zhaojun, who lost his job after his employer began exploring whether artificial intelligence could perform coding tasks traditionally handled by humans, the report said.

Fei was one of around 160 employees laid off during a workforce reduction at his company. Reflecting on the shift, he said that many mid-level programming roles are becoming replaceable as AI capabilities continue to improve. Since losing his job, Fei has stepped away from the tech industry and has been creating short-form videos while considering his next career move.

The speed of AI adoption in China has been striking. According to market intelligence firm IDC, fewer than 10 per cent of Chinese industrial enterprises were using AI models and agents in 2024. That figure surged to nearly half of all industrial businesses last year, highlighting how quickly companies are embracing the technology to improve efficiency and reduce costs.

The transformation is also becoming increasingly visible in daily life. Humanoid robots are being deployed in logistics operations, including parcel-sorting facilities, while autonomous machines are beginning to take on tasks such as traffic management.

Food delivery robots are also becoming more common in cities, prompting concerns about the long-term prospects of millions of workers employed in delivery and related services, as per the report.

The labour market impact comes at a challenging time for China’s youth. Although the country’s overall urban unemployment rate stands at about 5 per cent, joblessness among people aged 16 to 24 who are not in education remains significantly higher, approaching three times the national average. Analysts warn that widespread automation could make it even more difficult for younger workers to secure stable employment opportunities.

Economists say the benefits of AI are undeniable, but the transition could carry significant social consequences. Increased automation is expected to improve productivity and support economic growth, yet experts caution that large-scale job displacement could worsen existing employment pressures and contribute to social instability if new opportunities do not emerge quickly enough, according to the report.

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