Financial Capability and Wellbeing Among Migrant Workers in Post-COVID China: Evidence from Hangzhou, Zhejiang Province

Background and Purpose: Migrant workers have been central to China’s rapid urbanization and industrial growth, often relocating from rural areas to cities like Hangzhou in search of better economic opportunities. Despite gradual improvements in income and living standards, this population remains financially vulnerable due to limited access to stable employment, formal financial services, and social protections. The COVID-19 pandemic exacerbated these challenges by disrupting employment, straining household finances, and accelerating the shift toward digital financial systems. In this context, understanding the role of financial capability—including financial knowledge and financial access—in promoting financial wellbeing is critical to supporting migrant workers’ recovery and long-term resilience.

Methods: Using original survey data collected from 664 migrant workers in two communities with high concentrations of migrant workers in Hangzhou, Zhejiang Province, between January and March 2025, we examined how different dimensions of financial capability—namely financial literacy and access to financial services—relate to financial wellbeing. Given the widespread use of digital finance in China, particular attention was paid to digital financial literacy in addition to general financial literacy. Key variables—including financial access, financial knowledge, digital financial literacy, and financial wellbeing—were measured using the toolkit from the Organisation for Economic Co-operation and Development (OECD) International Network on Financial Education (INFE). Descriptive statistics and intercorrelation analyses were conducted to explore the relationships among these variables, and multivariate linear regression was employed to test the proposed model.

Results: Our analyses revealed that both financial access and digital financial literacy were positively associated with overall, subjective, and objective financial wellbeing. In contrast, general financial knowledge was not significantly associated with any measure of financial wellbeing. Monthly income showed a positive association with financial wellbeing across all measures, whereas unemployment was negatively associated. Additionally, being male was positively associated with objective financial wellbeing.

Conclusions and Implications: Financial capability, particularly in digital contexts, plays a vital role in enhancing the financial wellbeing of migrant workers and buffering against economic shocks such as the COVID-19 pandemic. As digital financial tools become increasingly central to everyday life in China, equipping migrant workers with the knowledge and resources to navigate these systems is essential. Policymakers and practitioners should prioritize inclusive financial education programs, expand equitable access to financial services, and design digital platforms that are user-friendly for low-income and less-educated populations. Such efforts can contribute to greater financial inclusion, reduce inequality, and promote the long-term economic integration and stability of migrant communities.