Lying Flat, the silent revolution of Chinese youth against extreme labour culture

First of all, record youth unemployment (officially exceeding 21.3 per cent in 2023, before Beijing suspended the publication of the data to 'refine the methodology') has prompted many young people to give up the active search for ultra-competitive positions and retreat into a sort of 'cooling-off period'.

In parallel, a partial 'flight from the big cities' is taking place among young people. If for years the dream had been to move to Shanghai or Shenzhen, today we see a reverse migration to smaller 'Tier 2 or 3' cities where the cost of living and social pressure are a fraction. And often this is accompanied by the return of young people, out of work or exhausted by the '996', to their parents' home.

But the sociological change does not stop there. It is even more deep-rooted and profound, and perhaps this is precisely the factor that will ensure that consumption will no longer be what it once was in China. Some segments of Chinese youth not only show disillusionment with work, but also show it towards status, money and how it is spent, when until now money was the only vector of social distinction in modern China. This too is an unprecedented sociological shift, and probably represents a point of no return.

Lying Flat' therefore does not just denote an attitude of tiredness or laziness, but represents a redefinition of existential ROI: the young Chinese have realised that the cost of success (lack of private life, mental health, real estate debts) has become higher than the benefit and leads to an earthquake in the foundations of the labour market and consequently of consumption in modern China.

The change is so radical that it has even taken the sleep out of Beijing's security apparatus. In fact, the Ministry of National Security, China's spy agency, recently spoke out on the subject of Lying Flat in a post encouraging young people to remain motivated despite everything by continuing to invest in themselves and the nation's future. But the implications on the consumption and lifestyles of the Chinese favoured by the government will be discussed in the next articles in this mini-series.

What, on the other hand, are the management implications of 'Lying Flat' in Chinese youths?

In management terms, it is the equivalent of Western 'quiet quitting' but to the nth degree because it is grafted onto a working society that was going in the diametrically opposite direction. And it opens up a whole new dimension in negotiations with employees who may appear less motivated or more inclined to renegotiate terms if they feel the 'price' in terms of stress and private life is too high. But at the same time, new loyalty levers open up: the purely economic career plan is no longer enough to retain Gen Z talent, which is starting to look (timidly) at work-life balance, also a first in the world of Chinese management.

Again China renews itself and surprises us, and perhaps for once comes closer to the way we Westerners think.

*Partner at FA Hong Kong Consulting