A study conducted by Boston Consulting Group revealed that about 3.5 million Web-based jobs are set to be created in China by 2020. (Photo : www.scmp.com)
A study conducted by Boston Consulting Group (BCG) revealed on Wednesday, Aug.12, that about 3.5 million Web-based jobs are set to be created in China by 2020, brought about by the Internet boom, the China Daily reported.
BCG said that in 2014, the Internet created 1.7 million jobs in China, 88 percent of them in small- and medium-sized enterprises, which generated less than 2 billion yuan ($316 million) in revenue.
"The numbers are eye-catching given that China is wrestling with slower economic growth," Li Shu, managing director at BCG, said. "But what's more impressive is the number of jobs the Internet has generated indirectly."
The report cited Taobao, Alibaba's online shopping site, as an example, which employs only 5,000 staff but has created 8.66 million jobs through sellers using the customer-to-customer platform.
"Compared with traditional industries which are operating independently, online businesses tend to build an open ecosystem which involves a large number of participants and can more efficiently boost the development of relevant industries," Li said.
According to the report, the Chinese logistics industry benefited immensely from the Internet boom, as the number of employees in the industry rose 900 percent, surging from 160,000 in 2011 to 1.4 million last year.
The study also indicated that the average age of employees who work in the Internet sector is 28.3 years old, and 55 percent of workers are younger than 29, contrasting sharply with national data that showed that 53 percent of Chinese employees are older than 40.
Jin Jianhang, Alibaba president, said that the study has confirmed that "the Internet is dominated by young people."
"It empowers companies to boost efficiency while employing fewer employees, offering a way to tackle China's aging population," Jin said.
BCG also noted that within three years, 60 percent of people working in technology sectors will start looking for better jobs.
"The high turnover rate in Chinese Internet firms shows the readiness of tech workers to seek new opportunities," Li said. "They are more open to risk and whenever a chance pops up, they will be the first to grasp it."
The report also noted that people in the sector eventually become self-employed, as the Internet enables them to start their own businesses.
Last year, BCG noted that nearly 210,000 fresh graduates chose to start their own business, a 21-percent increase since 2011.
The report further indicated that more workers prefer freelance work than full-time job, since most skilled Internet-based workers do not like to be tied to long-term contracts.
