State Council pushes support for gig and migrant workers

The July 20 State Council executive meeting, chaired by Premier Li Qiang, signaled two policy priorities to improve the lot of workers:

• A "new social security model" for flexible workers
• Improved housing support for migrant workers, who rarely qualify for government-provided affordable rental housing

Some context: China's roughly 240 million flexible and gig workers account for about a third of the workforce, yet most fall outside the social safety net.

• Beijing wants to enroll more, but many are reluctant to cut their already-thin take-home pay by making the necessary contributions.

What the measures likely mean:

• For gig workers, a mix of bigger contributions from platform companies, government subsidies, and more flexible payment options, so coverage rises without gutting wages.
• For migrant workers, wider access to affordable housing.

Get smart: Both measures could boost consumption. These are lower-income groups who spend most of what they earn, so every extra yuan in their pockets tends to flow straight into spending. 

Get smarter: Widening housing access also creates demand for the stock local governments are amassing through property buybacks, while cutting migrants' living costs.