Employment, as the greatest livelihood project, has been highly valued by Chinese governments. The fundamental solution to the employment problem lies in maintaining steady economic growth. Economic growth serves as the driving force behind increasing the employment scale and the number of job opportunities. Meanwhile, improving the quality of employment requires continuous growth in workers’ incomes, optimization of the working environment, and effective protection of workers’ legitimate rights and interests. In October 2022, at the 20th National Congress of the Communist Party of China, it was explicitly stated that China’s objective is to attain employment that is more abundant and of higher quality. The implementation of an employment priority policy was emphasized, highlighting the significance of both “quantity” and “quality” in the advancement of employment, with the ultimate goal of achieving high-quality full employment.

In recent years, rapid advancements in digital technologies, such as artificial intelligence, cloud computing, and big data, have propelled China’s economy and society into the fast track of digital economic advancement. The incorporation of the digital economy into the Chinese government’s work report initially transpired in 2017, and then the prevalence of the digital economy has been steadily escalating. According to the “China Digital Economy Development White Paper (2021),” China’s digital economy surged to a magnitude of CNY 45.5 trillion by 2021, constituting 38.8% of the GDP for that year. In stark contrast, the extent of China’s digital economy stood at a mere CNY 2.6 trillion in 2015, signifying 14.2% of the total GDP during that period. Currently, the digital economy has emerged as a pivotal impetus propelling high-quality progress within China’s economy. The “Insights into the Current Situation and Trends of China’s Digital Economy Development”, released by the China Academy of Information and Communications Technology, anticipates that by 2025, China’s total data volume is projected to encompass 30% of the global data volume, positioning China as the nation boasting the most extensive array of data types and the largest data volume. The amalgamation of digital technology with the real economy has engendered novel employment modalities, with the digital economy progressively assuming a momentous role in employment promotion, thereby constituting a vital impetus for fostering high-quality employment.

The emergence of the digital economy has led to the creation of numerous new employment opportunities. Apart from a smaller proportion of positions related to digital research and development, most employment opportunities in the digital economy are characterized by flexible employment arrangements [1]. These flexible employment positions primarily rely on internet platforms, such as freelancers, platform food delivery drivers, ride-sharing drivers, and so on. These flexible employment groups are often considered independent contractors rather than employees. The relationship between digital platforms and these flexible workers tends to be more of a business partnership rather than a traditional employment relationship. Compared to the protection of workers’ rights under ordinary civil law, this business partnership provides limited labor protection for flexible workers [2]. This means that they are not legally considered employees and they do not enjoy the traditional labor protections afforded to full-time employees, such as limits on working hours, overtime pay, paid leave, and workers’ compensation benefits [3]. This makes them vulnerable to potential exploitation and unfair treatment. The lack of a fixed employment relationship can result in a deterioration of labor rights [4], and most workers in the digital economy, including freelancers, platform food delivery drivers, and ride-sharing drivers, do not have labor protection contracts with the digital platforms they work for. These platforms cannot be regarded as genuine employers. Therefore, the increase in employment positions does not necessarily reflect a significant improvement in the welfare levels of these groups of workers. In this research, the assessment of employment quality does not solely rely on the quantity of employment positions but also takes into consideration labor protection and employment environment factors. A comprehensive employment quality index is constructed to assess the quality of employment. This approach aims to provide a more holistic understanding of the well-being and job security of workers in the digital economy, acknowledging that mere job quantity may not fully represent the effective enhancement of their welfare.

However, the digital economy development level in various regions in China demonstrates distinctive features. Innovation capacity and telecommunications services serve as important indicators for measuring the level of digital economy development, and these two indicators show significant variations across different regions in China. Taking the data on patent applications in various regions as an example, according to the “China Statistical Yearbook (2021),” [5] the top three provinces in terms of patent applications are Guangdong, Jiangsu, and Zhejiang, with 967,204, 719,452, and 507,050 applications, respectively. In contrast, Qinghai, the province with the lowest ranking, has only 6736 applications, a difference of approximately 143 times between the first and last place. In terms of telecommunications services, the top three provinces are Guangdong, with CNY 1502.53 billion, followed by Jiangsu with CNY 918.87 billion and Zhejiang with CNY 830.99 billion. The province with the lowest ranking is Tibet, with CNY 42.909 billion, whereas Guangdong’s is 35 times that of Tibet’s. The divergent growth of the digital economy poses challenges to the sustainable and healthy development of the overall economy. Regional disparities in digital economic advancement impede the integration and allocation of labor and capital resources, resulting in imbalances and hampering the enhancement of employment quality.

Tapscott initially introduced the concept of the digital economy, highlighting its differentiation from the traditional economy. Tapscott emphasized that the digital economy is characterized by the transmission of information through digital means [6]. Mesenburg pointed out that the digital economy encompasses the establishment of e-commerce infrastructure and its associated commercial activities [7]. Guo and Liang [8] argue that internet technology serves as the fundamental driving force behind the digital economy.

The development pattern of the digital economy differs significantly from the economic laws under traditional industries, and there are significant differences in the path of productivity enhancement [9]. Existing research has examined the optimization effects of the digital economy on productivity. On the one hand, the impact of industrial digitalization has driven the transformation of traditional industries through the application of digital technologies, aiming to increase production efficiency and output. The adoption of digital technologies by businesses helps reduce operational costs [10], which is due to the existence of spatial and temporal barriers to traditional employment methods. The development of the digital economy has considerably expanded the temporal and spatial boundaries of employment, facilitating the optimization of labor resource allocation [11]. On the other hand, it refers to the digital industries, which have a spatial spillover effect driven by the development of information and communication technology (ICT) and the internet industry [12]. Yang and Jiang [13] pointed out that this spillover effect plays a substantial driving role in the high-quality economic development of surrounding regions. Furthermore, the communication network infrastructure, which serves as the backbone of the digital economy, offers a robust basis for the functioning of digital business models, ultimately bolstering operational effectiveness for enterprises [14].

However, the presence of regional disparities in technological innovation talent absorption capacity, economic development levels, and digital economic policies has resulted in imbalanced regional characteristics in China’s digital economy development. These disparities can hinder the sustainable and robust growth of the digital economy. Li [15], utilizing the Dagum Gini coefficient method, conducted a study on output efficiency, regional disparities, and the dynamic evolution of the digital economy in different regions in China. The findings indicated that regional disparities in the digital economy have been widening over time. Jiao [16] examined the regional disparities of the digital economy in eight comprehensive economic zones in China, revealing significant variations among them. Han et al. [17], employing Kernel density estimation and the Dagum Gini coefficient, evaluated the development of the digital economy in China’s three major regions. The study concluded that the provincial-level development of the digital economy in China demonstrates a fluctuating upward trend with non-equilibrium or differentiated growth. In summary, the existing literature highlights substantial regional disparities in the level of digital economy development in China, yet there is a relative scarcity of literature analyzing the economic impacts brought about by this differentiated development level.

Employment quality is a multidimensional and comprehensive concept. Lai et al. [18] constructed an employment quality evaluation system based on certain criteria, such as worker compensation, social security, labor relations, employment conditions, and the work environment. Zhu et al. [19] developed an employment quality evaluation system based on employment capability, employment security, employment services, and employment level.

The existing literature has mainly examined the relationship between the digital economy and employment quality from a micro-level perspective, focusing on industries and enterprises. Some studies have indicated that the application of intelligent technologies generated by the digital economy may replace labor employment [20]. Others have pointed out that the emergence and widespread use of new communication technologies, such as computers and the internet, have weakened constraints on working hours and locations, potentially leading to longer working hours and decreased employment quality for workers ^[21][22][21,22]. Furthermore, the development of the digital economy, while increasing employment requirements, may also lead to structural unemployment, which could hinder the improvement of employment quality ^[23][24][23,24]. However, some studies argue that the advancement of the digital economy can improve productivity, alleviate labor intensity, and foster emerging job opportunities, which are beneficial for enhancing employment quality ^[25][26][25,26]. These two arguments have not yet reached a consensus in the existing research.

The majority of research has approached the correlation between the digital economy and employment quality from a micro-level viewpoint. Currently, there is no consensus as to whether the digital economy has a positive or negative effect on employment quality. Hence, it is crucial to comprehend the connection between the digital economy and employment at both the macro and micro levels, investigate its underlying mechanisms, and gain a deeper insight into the intrinsic impact of the digital economy on employment quality. Understanding this is pivotal for enhancing the digital economy to bolster employment quality. The existing literature predominantly focuses on the association between the digital economy and employment quality, with limited consideration given to the influence of China’s diversified digital economy development on employment quality.

Digital infrastructure plays a crucial role in the development of the digital economy, and its key functions can be seen from the following perspectives. Firstly, digital infrastructure provides robust data storage and processing capabilities, supporting the data-driven nature of the digital economy. The modern digital economy relies on technologies, such as big data analytics, artificial intelligence, and machine learning, which require vast data resources. Digital infrastructure serves as the backbone for these technologies. Secondly, digital infrastructure facilitates cross-regional connectivity through the internet, promoting the formation of interregional markets. Businesses can easily expand their operations across regions using digital infrastructure, accelerating trade and cooperation between regions. Additionally, digital infrastructure provides strong support for innovation and entrepreneurship, giving rise to numerous startups and technological innovations. Technologies like cloud computing, open data, and APIs enable more convenient product and service development. Furthermore, digital infrastructure helps improve the efficiency of business operations and reduces operational costs, enhancing a company’s competitiveness. It also creates conditions for the generation of employment opportunities. In summary, digital infrastructure is an indispensable pillar of digital economy development, providing a solid foundation for economic growth, innovation, and employment.

The differentiated development of digital infrastructure has the potential to exacerbate disparities between regions, affecting the balanced growth of the digital economy. This situation can result in a widening wealth gap [27], hindering the overall sustainable development of the digital economy. In cases where there is an imbalance in digital economy development, regions with existing capital advantages are more likely to adopt modern intelligent production equipment at a faster rate, thus strengthening their capacity to attract investments. Consequently, this further amplifies the disparities in production capital proportions between regions with relatively weaker capital [28].

The length of fiber optic cables and the number of broadband internet access ports are relevant indicators of digital infrastructure because they reflect two crucial aspects of digital infrastructure: the coverage and capacity of communication networks, which are vital for the development of the digital economy. Firstly, the indicator of fiber optic cable length is of paramount importance because it signifies the availability of high-speed and stable data transmission. Fiber optic communication is a high-bandwidth, low-latency transmission method that, in comparison to traditional copper wires or wireless communication, can support larger data transmission capacities. Consequently, the extent of fiber optic network coverage directly impacts the performance of various data-intensive applications in the digital economy, including online video streaming, cloud computing, big data analysis, and remote work. Extensive coverage of fiber optic networks in a region can provide faster and more reliable internet connections, thus facilitating the widespread adoption and use of digital services. Secondly, the number of broadband internet access ports is another critical indicator because it reflects the capacity and availability of digital infrastructure. Broadband internet access ports refer to communication interfaces that allow individuals and businesses to connect to the internet. With the continuous development of the digital economy, an increasing number of devices and applications require fast and stable internet connectivity. This necessitates a greater number of broadband internet access ports. Having an adequate quantity of broadband internet access ports can meet users’ demands and support a wide range of online activities, including e-commerce, online education, telemedicine, and the connectivity of smart home devices. Therefore, the quantity of broadband internet access ports is a key metric that indicates whether a region’s digital infrastructure is sufficient to support the development and innovation of the digital economy. In summary, the length of fiber optic cables and the number of broadband internet access ports are pivotal indicators of digital infrastructure. They are essential for the successful development of the digital economy, ensuring efficient data transmission, enabling data-intensive applications, and supporting a wide range of online activities. Improvements in these indicators can enhance the competitiveness of the digital economy, foster economic growth, and create employment opportunities.

In 2020, Jiangsu had a total optical fiber length of 3,990,069 km, Zhejiang had 3,497,879 km, and Sichuan had 3,535,457 km. On the other hand, the three regions with the lowest rankings were Tibet, with only 201,862 km, followed by Ningxia with 269,378 km, and, slightly higher, was Qinghai with 375,296 km. In terms of internet access port numbers by 2020, Guangdong had the highest with 86.5323 million ports, followed by Jiangsu with 72.2486 million ports, and, finally, Shandong with 67.5676 million ports, ranking in the top three. Conversely, Tibet had only 2.1898 million ports, and Qinghai had 4.1282 million ports. The unequal development of digital infrastructure between regions will have a negative impact on the overall employment quality. Uneven development of digital infrastructure will put workers in underdeveloped regions at risk of unemployment and inadequate employment opportunities. This is because the digital economy increasingly relies on high-speed internet and digital technologies. In regions with relatively weak digital infrastructure, people have fewer opportunities to access remote work, online learning, and digital entrepreneurship. This exacerbates the digital divide, limiting the participation of businesses and individuals in the digital economy in areas with relatively weak digital infrastructure. Furthermore, digital skills have become crucial in the digital economy, and regions with insufficient digital infrastructure development will lack opportunities to provide digital skills training and education for workers, leading to a skills gap. Moreover, individual entrepreneurship and business development in regions with relatively weak digital infrastructure will be constrained. Areas lacking digital hardware support struggle to attract digital companies and achieve the digital transformation of traditional companies, which hinders local job growth and employment quality improvement. This situation can result in an influx of labor into areas with advanced digital infrastructure, leading to job shortages in those regions. In contrast, underdeveloped areas with weak digital infrastructure struggle to drive the digital transformation of their economies, making it difficult to improve the employment environment and wage levels for local workers. Therefore, the differential development of digital infrastructure will overall hinder the improvement of employment quality. It creates disparities in job opportunities, digital skills acquisition, and economic growth potential between regions, which, in turn, affect the quality of employment available to individuals in those areas.

The potential positive mechanism of the digital economy and employment quality is shown in Figure 1. As the digital economy continues to evolve, it has created new market demands and further spawned new types of occupations. Examples of these emerging employment groups include platform food delivery drivers, ride-sharing drivers, and online service providers. These emerging employment groups have distinct characteristics in the digital realm, reflecting the profound impact of the digital economy and technological developments on work patterns and the job market. Firstly, digital tools provide these emerging employment groups with greater flexibility. They can work anytime and anywhere through mobile applications, and they are no longer confined to traditional offices or work locations. This digital flexibility allows them to better balance work and life, adapting to different schedules and demands. Additionally, digital platforms offer these employment groups more extensive market opportunities. Digital platforms connect suppliers and demanders, enabling them to provide and access services over a broader range, creating more employment opportunities.

However, digitization also presents some challenges. These occupations may involve a certain degree of digital divide, as individuals with lower digital literacy might face exclusion. Furthermore, the instability of the digital economy to some extent affects the stability of these professions. Their income is often dependent on fluctuations in the number of orders and market demand. Digitization is one of the primary occupational characteristics of these emerging employment groups, granting them greater flexibility, market opportunities, and efficiency. However, it also brings challenges, such as the digital divide and instability. The people, due to a lack of the ability to use the digital device, can be isolated from the digital economy and its opportunity for employment. The difference in people’s ability to use the digital application can be seen as the individual differences of the digital application, and those regions with relatively lower human capital may have a relatively lower level of digital applications.

E-commerce can be seen as an initiative application of digital applications in people’s lives, and e-commerce has become a crucial component of China’s contemporary digital economy, exerting a profound influence on economic growth and employment quality. Driven by the global wave of digitization, the Chinese e-commerce market has rapidly risen to become one of the world’s largest online retail markets. This trend has not only altered business models but also presented new opportunities and challenges for China’s job market. Firstly, the rise of e-commerce has propelled the vigorous development of China’s digital economy. Through digital means, such as online shopping, digital payments, and e-commerce platforms, China’s business ecosystem has been upgraded and expanded. This has provided businesses with broader markets and more efficient operational methods, thereby powerfully driving the growth of China’s digital economy. Simultaneously, the Chinese government has actively supported the development of the digital economy, further unleashing the market potential of this sector through policy guidance. Secondly, the ascent of e-commerce has had a profound impact on the quality of employment in China. E-commerce platforms have created new employment opportunities, including for platform food delivery drivers, warehousing and logistics workers, and e-commerce platform operators, among others. These emerging forms of employment typically offer flexibility, allowing individuals to choose their work hours according to their schedules. However, they also come with a degree of instability and issues related to social security. Therefore, e-commerce is of utmost importance for China’s job market, requiring a balance between increasing job opportunities and improving employment quality. However, as e-commerce has rapidly developed in China, its level of development varies across different regions. Some major cities and coastal areas have rapidly adopted and promoted e-commerce, while other regions may face challenges, such as insufficient digital infrastructure, limited market access, and talent drain. This has resulted in significant disparities in the development of e-commerce across China. Firstly, first-tier cities and eastern coastal regions in China are typically e-commerce hotspots, benefiting from stronger digital infrastructure, higher internet penetration rates, and more market opportunities. In these areas, e-commerce platforms thrive, attracting significant investments and corporate participation, thus driving the growth of the digital economy. Secondly, relatively less-developed inland regions may encounter challenges related to inadequate digital infrastructure, limiting the development of e-commerce. The lack of high-speed internet connectivity and support for digital technologies makes it difficult for residents in some regions to fully access the opportunities offered by the digital economy, exacerbating the digital divide. Due to the uneven development characteristics of e-commerce, it has implications for employment quality in different regions. E-commerce creates a substantial number of job opportunities in first-tier cities and coastal regions but may offer fewer opportunities in China’s central and western regions. In this context, this section will delve into the phenomenon of the uneven development of e-commerce across various regions in China, analyze its impact on the digital economy and employment quality, and explore ways to address this imbalance to ensure that the opportunities of the digital economy are more broadly distributed nationwide, promoting fair and sustainable employment quality growth.

In 2020, the percentage of enterprises engaged in e-commerce trading activities varied across different regions in China. Heilongjiang accounted for 5.5% of total enterprises, Liaoning accounted for 5.8%, Xinjiang accounted for 6.2%, and Henan accounted for 7.5%. In contrast, Chongqing accounted for 13.7% and Zhejiang accounted for 12.2%. The percentage level of participation in e-commerce and the quality of employment are closely related in China. The uneven development of e-commerce across different regions and industries has resulted in varying degrees of e-commerce participation, thereby influencing the diversity of employment conditions. Regions with high levels of e-commerce participation typically create more job opportunities, particularly in certain areas, such as e-commerce platform operations, logistics, digital marketing, and customer support. These fields of work often require digital skills and online sales experience. Therefore, individuals employed in more developed e-commerce regions are more likely to secure jobs related to the digital economy and enjoy relatively higher average salary levels.

Firstly, regions with advanced digital economies typically have more sophisticated digital infrastructure, attracting the presence and investments of businesses related to the digital economy. This provides these regions with more job opportunities. Secondly, these advanced digital economy regions have a greater demand for advanced digital skills and specialized knowledge, requiring workers to undergo higher-level digital skills training. The availability of educational resources and labor mobility makes digitally developed regions more attractive. However, this attractiveness can also pose risks of over-competition and “burnout” among job seekers, as the labor supply may exceed the actual demand for positions. Job seekers may resort to long working hours or even accept lower wages to gain a competitive edge, ultimately lowering employment quality. In contrast, less-developed regions in the digital economy may receive less attention from digital-centric businesses, leading to fewer job opportunities related to the digital economy. These regions may also have limited capacity to absorb labor. Additionally, wage levels in these regions tend to be lower than in digitally developed areas. Less-developed digital economy regions often engage in low-end industries within the digital economy, such as e-commerce warehousing and logistics, while high-end industries, like software and hardware development and financial promotion, are concentrated in digitally developed regions. If the disparities in digital economic development levels between regions continue to widen, the disparities in employment levels will become more pronounced. Mismatches in labor resources between regions will lead to a decrease in employment quality. The employment situation in digitally developed regions will become increasingly challenging, while the employment levels in digitally less developed regions will remain stagnant, ultimately hindering the overall improvement of employment quality in China.

Existing research has confirmed that advancements in internet technology optimize the employment structure, and the widespread application of digital technology creates new job opportunities in the tertiary sector [29]; it has partially substituted employment positions in labor-intensive and medium-to-low technology-intensive industries [30]. Meanwhile, the digital transformation of traditional enterprises can significantly improve productivity [31]. Hu et al. [32] have found that the advancement of digital technology is associated with consistent growth in employment, contributing positively to the restructuring of industries and the creation of job opportunities. Guo [33] has pointed out that the increasing adoption of artificial intelligence is expected to drive the expansion of digital finance, consequently influencing the structure of industries. Wang [34] showed that the industrial intelligence in China expands the absorptive capacity of the service sector for employment, thus contributing to the improvement of employment quality. Ye et al. [35] conducted an empirical analysis using panel data at the provincial level in China during 2001–2017. Their study examined the impact of digital economic development on employment structure, considering various aspects, such as industry, sector, and skills. Their findings suggest that the digital economy has played a significant role in reshaping China’s employment structure, leading to a shift towards a manufacturing-oriented, high-tech, and high-skilled direction.

The convergence of digital technology and traditional industries has revolutionized information transfer and knowledge acquisition, effectively reducing production costs for enterprises and achieving more efficient resource allocation. It has also enabled economies of scale and precise resource allocation, thus driving the transformation and upgrading of industrial structures [36]. However, the differentiated development of the digital economy leads to variations in the integration between digital technology and the real economy in terms of speed, quality, and extent across different regions [37]. This disparity creates imbalances in supply and demand, information transmission, and knowledge acquisition. Consequently, there is a misalignment of labor resources, which impedes the enhancement of employment quality. Moreover, the differential development of the digital economy hinders the balanced development of emerging industries across regions, obstructing the overall progression of the industrial structure towards the mid-to-high end [38].

Therefore, the differentiated development of the digital economy poses a constraint on the transformation and upgrading of the overall industrial structure. The industrial structure and employment structure are two complementary systems, where the advancement of the industrial structure drives improvements in the employment structure. However, the speed of upgrading the employment structure often lags behind that of the industrial structure. According to Zong et al. [39], the upgrading of the industrial structure generates numerous emerging job positions. This upgrading process has a positive impact on employment quality, but the differential development of the digital economy hampers the transformation and upgrading of the industrial structure, thus adversely affecting employment quality. As the digital economy advances, workers in the primary sector gradually transition away from agricultural work and move into manufacturing, services, and other related industries. Simultaneously, the upgrading and transformation of the secondary industry through digital technology will improve the production efficiency of this sector, promote new social divisions of labor, and, consequently, increase the demand for emerging service industries. As a result, the tertiary industry will continue to develop. Therefore, sustained progress in the digital economy facilitates the gradual shift of labor from the primary industry to the secondary and tertiary industries, ultimately leading to an improvement in employment quality through the upgrading of the industrial structure. If the digital economy develops in a balanced manner across different regions in China, it will drive the overall industrial structure towards higher levels.

However, the differential development of the digital economy has significant disparities in the adjustment speed of the industrial structure among regions, thereby impeding the transformation and upgrading of the overall industrial structure [40]. Furthermore, it distorts the rationalization level of the industrial structure within each region. This ultimately hinders the enhancement of employment quality and inhibits the healthy development of the industrial structure ^[41][42][41,42]. Skilled labor in regions with relatively backward industrial structures and relatively lower levels of digital economy may migrate to regions with relatively better industrial structures and higher levels of digital economy. This migration pattern results in regions with better industrial structures attracting a greater number of high-skilled and low-skilled workers. However, the excessive concentration of talent can lead to a mismatch in labor resources. The over-concentration of labor in regions with developed industrial structures and digital economies may transform the healthy labor market competition into a state of involution, ultimately undermining the overall improvement of employment quality.