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China’s largest online domestic helper agency says labour shortage a worry amid population decline

By：Khongtu Review　Release Time：2023-06-29 11:10　Like：

It will be increasingly hard to  find enough domestic helpers as China’s labour base shrinks and Chinese millennials remain reluctant to do such work, says Chen
China’s population peaked in 2022 as the country’s birth rate slowed   dramatically,  with ramifications for  many aspects of the Chinese economy and society

China’s population peaked in 2022 with ramifications for many aspects of the Chinese economy and society. Photo: Reuters

China’s largest online domestic helper agency, Swan Daojia, says a future labour shortage is one of the biggest risks it faces amid the country’s declining population.
 
Chen Xiaohua, founder and CEO of the agency also known as 58 Daojia, told a digital economy forum hosted by Alibaba Group Holding’s Luohan Academy in Hangzhou on Wednesday that it will be increasingly hard to find enough domestic helpers as the labour base shrinks and Chinese millennials are reluctant to work in such jobs.
 
“Decline in population is a big concern,” Chen said. “Ten years from now, it’ll be hard to find those born in the 1990s or 2000s [willing] to work as Ayi,” Chen said, using a Chinese phrase for domestic helper.
 
“Those who can afford domestic services [in China] today should feel lucky, as it is [going to be] more difficult and expensive to hire a domestic helper [a decade] from now,” he said.

China’s population peaked in 2022 as the country’s birth rate slowed dramatically, with ramifications for many aspects of the Chinese economy and society. Chen said his agency has provided intermediary services for about 2 million Chinese domestic helpers, making it the largest in the country. Chen noted that China’s domestic helpers are mainly females between 35 and 55 years old.
 
According to China’s demographic statistics, this cohort of the population is set to fall sharply in the coming years. For instance, China recorded 24.45 million births in 1988, but just 19.33 million births in 1998, suggesting about five million fewer people will turn 35 a decade from now than this year.
 
Meanwhile, Beijing has implemented strict immigration laws for foreign labour, making it hard for China to follow the path of advanced economies by importing workers to fill supply gaps in jobs such as domestic helper, he added.
 
Separately, Daojia, which is backed by online job website 58.com and Alibaba, is not in a hurry to refile an initial public offering after it withdrew an application to float shares in New York two years ago, Chen told the South China Morning Post on the sidelines of the meeting. Alibaba owns the Post.

Boys wearing face masks and t-shirts that say ‘China’ walk along a street in Beijing, May 18, 2023. Photo: AP

Daojia decided to withdraw its IPO application after China’s cyberspace administration initiated an investigation into Chinese ride-hailing giant Didi Chuxing, which had gone public in New York against the wishes of the regulator. Didi ended up paying a fine of 8 billion yuan (US$1.1 billion) and later delisted from New York.

Chen said the current market situation is not favourable as overseas investor appetite for Chinese stocks has soured.
 
Daojia also helps people book housekeeping services such as cleaning, cooking, and appliance repairs via its app.
 
The company reported 711.1 million yuan in revenue for 2020, according to its prospectus in 2021. Chen did not update the financial figures, but said commission revenue has reached 1 billion yuan.

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