Digitalization’s Effect on Chinese Employment Mechanism Study

Abstract

The influence of the digital revolution on the labor market is undeniably profound. While much of the existing research has concentrated on the role of digitalization in boosting employment rates, its impact on the long-term sustainability of employment remains largely unexplored. In the context of prevailing uncertainties, the imperative to bolster employment resilience through digitalization becomes increasingly apparent. This study aims to bridge the existing gap by introducing an innovative analytical framework that integrates digitalization, enterprise resilience (ER), and sustainable employment (SE). Focusing on publicly listed companies within China’s manufacturing sector, the research employs fixed effects models and mediation analysis to intricately explore the interactions among these variables. The investigation yields several pivotal insights: (1) digitalization has a significantly positive impact on sustainable employment; (2) enterprise resilience acts as a positive mediator in the relationship between digitalization and sustainable employment; (3) through heterogeneity analysis, it is demonstrated that digitalization plays a more pronounced role in bolstering employment stability in non-high-tech industries and companies exhibiting superior financial health in the eastern region. These findings offer critical perspectives for informing government policy and devising corporate strategies that capitalize on digitalization and enhance enterprise resilience, thereby promoting more sustainable employment trajectories.