“Clearing” Legacy: It is difficult for Chinese companies to recruit workers if workers do not return to the factory

[February 17, 2023](Comprehensive report by Epoch Times reporter Chen Ting) Although the CCP authorities claimed that after three years of “clearAfter that, China’s economy will soon get back on track. But the shadow of this destructive policy still hangs over China’s manufacturing center.

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According to Bloomberg (Link), as an important economic center in southern ChinaGuangzhoumany factory owners and recruiters said that there are a large number of workers who are reluctant to return to work after the New Year holiday.

Under the strict control by the authorities last year, these workers suffered a long-term suspension of work. They had no wages for a long time and faced difficulties in their lives. This eventually led to conflicts between the police and the people, which turned into serious protests for rights protection. (learn more)

According to Bloomberg, the severeclearpolicy that makes a lot ofMigrant WorkersThe reluctance to return to factories has exacerbated long-term structural problems in China’s labor market. Before zero, the workforce was already shrinking due to an aging population, and young people were less willing to work in low-wage, labor-intensive industries.

Tang Ning, a recruiter in the Haizhu district, said she had been working hard for a week but was unable to hire a single worker. The garment factory where she worked for more than ten years had more than 30 employees before the Chinese New Year holiday, but only 10 employees came back to work after the holiday.

Tang Ning said that their reluctance was understandable.

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“Imagine, you leave your hometown and move to a big city. You can’t afford a house on your lifetime wages. You live in a small old room, share a toilet with many people, and work 12 hours a day. The only goal is to earn and save as much as possible. money,” Tang Ning said, “but then it was blocked. You don’t know how long there was no wages at all.”

Tang Ning said that if it continues to be unable to recruit people, the factory will consider raising wages, but due to the meager profits, the increase will be very limited.

She is from Sichuan Province, inGuangzhouWorked for over a decade and considers the city home to her, her husband, and their five-year-old. But Tang Ning said: “For the young workers in the past three years, Guangzhou has only given them the experience of living in small houses, being blocked and without any savings. What’s the point of staying?”

Bloomberg said that although there is no data to show that the 296 million Chinese exports are the driving force of the economy.Migrant WorkersAmong them, how many people did not return to the factory, but employees and managers have shown that many industries are difficult to get on track due to lack of workers, and companies are therefore forced to increase wages.

According to the report, migrant workers are one of the groups most affected by the CCP’s epidemic prevention policy, and factories have been locked down due to the “clearing”. Workers may go without wages for months, or be forced to work in “closed-loop” conditions, without contact with anyone outside the factory for long periods of time, and separated from their families.

Bruce Pang, chief economist for Greater China at Jones Lang LaSalle, said: “After experiencing the uncertainty during the Covid-19 lockdown, more migrant workers are determined to stay in their hometowns. .”

According to a survey by “Zhaolian Recruitment”, nearly 40% of workers returning home for the Chinese New Year want to find a job locally, and about 15% of them have already started looking for a job.

Joerg Wuttke, president of the European Union Chamber of Commerce in China, said that high wages attract workers into labor-intensive industries, which may damage China’s long-term advantage of low labor costs.

“In a very short period of time, China will definitely lose every opportunity in labor-intensive products.” Woodker pointed out that countries such as Bangladesh, Vietnam and Indonesia will be the beneficiaries.

The hesitation of migrant workers to return to factories shows that China’s economic outlook remains uncertain. Meanwhile, consumer confidence remains near record lows, auto sales continue to plummet and housing is far from recovering. While industries such as catering and travel rebounded during Chinese New Year, spending remains well below pre-pandemic levels.

Responsible Editor: Ye Ziwei#