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The USD 200 billion Chinese food delivery industry, once a thriving sector that expanded during the Covid-19 pandemic, is now facing a downturn, according to a report by CNN.
Having more than doubled in size over three years, this industry - the world's largest by revenue and volume of orders - had provided a steady income for casual workers. However, the workers are now struggling to make ends meet. China's economic slowdown, prompted by a property crisis and weak consumer spending, has hit delivery workers hard, decreasing their incomes and job stability. On Friday, the National Bureau of Statistics (NBS) revealed a moderation in third-quarter growth and said that weakened consumer spending and the ongoing property market crisis continue to weigh heavily on the economy. Gross domestic product (GDP) grew by 4.6 per cent in the three-month period from July to September, compared with a year ago. That was just slightly higher than the expectations of economists polled by Reuters, who had predicted an expansion of 4.5 per cent, CNN reported. According to a professor at the Polytechnic University of Hong Kong, delivery workers will persistently face pressure as long as delivery platforms prioritise cost-cutting measures. "They are working long hours, really being squeezed," said Jenny Chan, associate sociology professor at the Polytechnic University of Hong Kong. "[And] they will continue to face pressure as [delivery platforms] have to keep the cost low," she said. Chan further noted that the economic downturn has led to a shift towards budget-friendly meals, resulting in decreased earnings for delivery workers, who must then work extended hours to maintain their earnings. Apart from the given problems, the workers are constantly under immense pressure to meet tight deadlines, even if it means cutting corners on the road - by speeding or running red lights - causing hazards that endanger both themselves and other road users, CNN reported. Delivery workers have been witnessing their paychecks shrink dramatically, increasing their financial struggles. Last year, they made 6,803 yuan (USD 956) a month, according to a report from the China New Employment Research Center. That's almost 1,000 yuan (USD 140) a month less than they were making five years ago, despite many reporting working longer hours, according to CNN. A 1,000 yuan difference may seem negligible in US dollars, but it's substantial in China, where the national average monthly wage stood at just 1,838 yuan (USD 258) last year, according to the NBS figures. (ANI)
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