Kunshan, a county near Shanghai long regarded as a hub of China’s electronics manufacturing industry, is facing a significant shift as automation and advanced technologies reshape the local economy. Once known for producing a large share of the world’s laptops and employing millions of factory workers, Kunshan is now emblematic of the challenges confronting low-skilled laborers amid China’s transition toward high-tech industries.

Workers like Hu Xinbing, 31, who migrated from Henan province to Kunshan for factory jobs, find themselves increasingly displaced. Hu, who previously held longer-term contracts assembling devices for companies supplying Apple and Dell, now relies on day-to-day gigs, such as security work, earning a fraction of his former income. He described how automation has reduced the need for human labor in factories: “It’s all robots driving screws. They don’t need people to do it anymore.”

Kunshan’s government has actively encouraged development in sectors like artificial intelligence and advanced manufacturing, supporting companies producing next-generation technologies, including flying cars. Meanwhile, traditional electronics manufacturers have embraced robotics to maintain production amid uncertain global demand influenced by trade tensions. This shift has led to job losses and wage cuts for workers who previously enjoyed more stable employment.

Analysts note this transition poses a broader challenge for China as it seeks to become a technological superpower. While sectors such as solar energy and electric vehicles are expanding, the new jobs created often require specialized skills that many displaced workers lack. Millions of less-skilled workers have instead turned to gig employment, often within the same factories or in related casual labor, with limited prospects for skill development or stable income.

According to Zhang Dandan, a Peking University professor who studies migrant workers in Kunshan, gig workers constitute approximately 40 million people in China’s manufacturing sector. In some large factories, contract labor makes up as much as 80% of the workforce. Zhang has called for enhanced retraining programs and stronger labor protections to address the vulnerabilities of gig workers, though recent court rulings concerning layoffs linked to artificial intelligence have primarily focused on white-collar employees.

The social consequences of these economic changes are visible in locations such as Zhenchuan Good Samaritan Park in Kunshan, a spot where dozens of out-of-work men gather regularly, resting on benches or in makeshift tents while searching for daily construction or security gigs. Nearby, modest dormitories offer minimal-cost lodging for some workers, reflecting a precarity that contrasts sharply with the county’s reputation for prosperity.

Hu’s experience underscores these dynamics. Once able to save a small portion of his earnings despite tough working conditions, he has endured health issues linked to factory work and now faces uncertain prospects. Returning to his previous employer in 2024, he found the production line heavily automated with “ice-cold machines” and fewer human workers performing auxiliary tasks. The pace and pressure of supporting robotic operations, Hu said, made the work even more exhausting and isolated.

Despite a personal admiration for China’s advancements in robotics—including public demonstrations of humanoid robots and automated delivery drones—Hu expressed concern about his future. Without formal education or specialized training, adapting to the evolving labor market remains a daunting challenge.

On a recent day, Hu secured a short-term job as a security guard at an event in Shanghai, earning about $18 for the day before returning to Kunshan to resume his search for work. His situation reflects a broader trend confronting millions of Chinese workers who have yet to find stable footing in the nation’s drive toward automation and high-end technologies.