Shenzhen, Hangzhou boom as China's workforce moves toward tech hubs

Shenzhen, China's Silicon Valley, attracted young talent in 2024, boosting its permanent population by 199,400 to 17.99 million

In 2024, Shenzhen and Hangzhou experienced significant population growth, diverging from China’s overall demographic decline. These cities successfully attracted an influx of migrants, positioning themselves as key destinations for professionals and entrepreneurs, according to a report by South China Morning Post.

 

However, several central and western provinces saw their populations shrink as the competition for talent intensified. The ongoing demographic challenges in these regions contributed to an imbalance, with workers relocating to more developed urban centres.

 

Migration patterns  

Local governments have begun releasing their 2024 population statistics, with Shenzhen and Zhejiang province — home to Hangzhou — being among the first to publish their reports. However, major cities like Beijing, Shanghai, and Guangzhou have yet to disclose their data. By the end of 2024, Zhejiang’s permanent population reached 66.7 million, marking an increase of 430,000 from the previous year. The rise was solely driven by migration, as deaths outnumbered births by 24,000. Hangzhou, along with Ningbo and Wenzhou, accounted for over 60 per cent of Zhejiang’s total population growth, the news report said.  

 

 

Hangzhou’s strategies to attract talent  

 

Hangzhou has actively implemented policies to draw skilled professionals, offering start-up subsidies, talent incentives, and rental assistance. The city has also established itself as a major technology hub, home to prominent firms such as DeepSeek (AI), Unitree (robotics), and Game Science (gaming).  

 

China’s Silicon Valley Shenzhen continued to attract young talent in 2024. The city’s permanent population increased by 199,400, reaching 17.99 million. To support new arrivals, Shenzhen expanded its accommodation benefits for job seekers and provided rental subsidies for professionals. Additionally, Guangdong province, where Shenzhen is located, recorded the highest number of births nationwide, contributing to the city's growth, the report said.  

 

Declining populations in central, western regions  

 

In contrast, provinces such as Jiangxi, Guangxi, Guizhou, Gansu, and Qinghai experienced population declines. Jiangxi’s population fell by 130,000, while Guangxi and Guizhou saw decreases of 140,000 and 50,000, respectively.  

 

Despite a slight increase in births for the first time since 2017, China’s total population continued to decline for the third consecutive year, falling by 1.39 million to 1.4083 billion. With deaths outpacing births, the country faces a long-term challenge in managing its shrinking workforce and ageing population, the report said.