The Effect of FinTech on “Stable Employment” Under Economic Policy Uncertainty—Evidence from China

Based on firm-level data covering 3013 Chinese listed companies over 2011–2020, we examine whether regional FinTech development mitigates the impact of economic policy uncertainty (EPU) on corporate labor demand. Regional FinTech development is positively associated with stronger employment resilience during periods of elevated EPU. This relationship operates through two primary mechanisms: first, it acts as a liquidity insurance mechanism that eases financing frictions; and second, it optimizes the business environment by reducing both environmental uncertainty and business uncertainty perceptions. These combined effects encourage firms to engage in labor hoarding, thereby maintaining a stable workforce. The steadying effect is intensified among businesses facing capital scarcity—particularly younger firms and those in underdeveloped market environments—as well as those characterized by elevated costs for workforce adjustments, such as high-technology and competitive enterprises. Furthermore, we find that FinTech shifts labor demand toward high-caliber and practical talents during periods of uncertainty.