CHINA: Millions of migrant workers return to factories after the Lunar New Year holiday, but with a darkening outlook for exports, many may find the long journey a financial strain and seek work elsewhere

Record ID: 348503

  • Title: CHINA: Millions of migrant workers return to factories after the Lunar New Year holiday, but with a darkening outlook for exports, many may find the long journey a financial strain and seek work elsewhere
  • Date: 31st January 2012
  • Summary: SHANGHAI, CHINA (JANUARY 29, 2012) (REUTERS) EXTERIOR OF SHANGHAI RAILWAY STATION SIGN OF SHANGHAI RAILWAY STATION PEOPLE WALKING OUT OF EXIT TRAIN SCHEDULE ON ELECTRONIC BOARD VARIOUS OF PEOPLE WALKING OUT OF EXIT (SOUNDBITE) (Mandarin) 26-YEAR-OLD MIGRANT WORKER MA QIANGJUN FROM GANSU PROVINCE SAYING: "There is also work in my hometown. Actually it is better to fi
  • Embargoed: 15th February 2012 12:00
  • Keywords:
  • Location: China, China
  • Country: China
  • Topics: Arts / Culture / Entertainment / Showbiz
  • Reuters ID: LVA3RWT43ZNJYS99IFH05AUOFG8V
  • Story Text: Millions are crowding China's railways stations and airports in the annual Lunar New Year U-turn rush back to work.
    But with a darkening outlook for exports, many may find the long journey not worth it in an uncertain future and search for work elsewhere.
    China's economy has been showing signs of a strain since 2011 due to mounting piles of local government debt, a sharp drop in external demand for exports and nagging inflation.
    A pronounced slowdown could mean a layoff of millions of migrant factory workers as manufacturers and exporters look to cut costs in response to slowing orders from the West, especially from debt-ridden Europe.
    "There is also work in my hometown. Actually it is better to find work in my hometown. The cost of living here is too high. You make 3,000 ($475 USD) to 4,000 yuan ($633 USD) every month, but after paying for housing and food, there is almost nothing left," 26-year-old Ma Qiangjun, a migrant worker from northwestern Gansu province, said on Sunday (January 29).
    A downturn is sweeping through China's giant manufacturing sector, ensnaring thousands of factories in the Pearl River and Yangtze River deltas already fighting for survival in the face of plunging profit margins.
    A report released by ManpowerGroup predicted the net employment rate for 2012 would drop dramatically from the 2011 figure of 37 percent growth.
    Although faced with uncertainties in big cities like Shanghai, many workers said they did not have many other options.
    "I have been working in Shanghai for a few years. I think it is good to work here. The wages are not as high, and workers don't get paid in time very often in my hometown," said 51-year-old Zhang Qingwen from eastern Anhui province.
    Like Zhang, 34-year-old Han Dongqing also chose to return to her work in a refrigeration equipment factory in Shanghai.
    "Our factory is doing well, and the pay is fine. My hometown is not as developed as here, so I came here," she said.
    But her boss, Zhang Renjun, general manager of Shanghai Junle Refrigeration Control Co. was not so optimistic.
    "I think there are more than enough workers in my factory. Business has slowed since the second half of last year, we got less orders than two years ago. So we have too many workers now," said Zhang on Monday (January 30).
    Zhang added that his factory, mainly exporting to Europe and the United States, has lost eight percent of orders since the late half of last year, and he might consider cutting costs.
    China's export growth slowed to two-year lows of just 11 percent in November last year.
    Some Chinese officials -- aware that Beijing's Communist Party leaders, including Premier Wen Jiabao, advocate raising rural wages to reduce income inequality and speed China's transformation into a consumption driven-economy -- seem willing to let low-margin industries wither away.
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