Stabilizing the economy seems arduous for the Chinese regime thus far, as the layoff tide revisits the country’s largest manufacturing center, the Pearl River Delta.

As South China Morning Post reported on June 18, a migrant worker from Shenzhen named Xie Yifei said that his employer had given staff weekends off this month. The place was also planning to stop hiring production-line workers younger than 35. 

He said at present, a lot of vacancies and rentals are returning to the industrial area on the border of Dongguan and Shenzhen.

Factories are under three headaches: 

  1. Supply chain disruptions brought about by zero-COVID restrictions, 
  2. Declining demand from overseas partners, 
  3. Orders were lost to Southeast Asia.

The Post noted the worries are a mutual concern across industries, from footwear to electronics to garments. As a result, migrant workers in the region are now subject to sudden layoffs, or at least payment shrinkage. 

For example, Tecqum Electronic Technology, on May 31, told employees that there would be no jobs until October. The firm explained that it was going through a sharp decline in domestic and foreign orders, rising inventory costs due to the inability to export finished items, and a lack of raw materials.

Senior executive Hu later said the company was reviewing its leave without pay, but the production problems persisted. Tecqum Electronic Technology is situated in Qingxi township, the manufacturing hub of Dongguan, Guangdong province.

W.Y. Wang, an export-oriented pet product factory owner, said the pandemic two years ago did not affect his business much because the U.S. rolled out pandemic funds. However, this year, orders dropped by 60% in the second quarter compared to 2021. 

Wang said they worked no overtime or weekend shifts for weeks. They could only afford to pay workers the local city’s minimum monthly salary of around $300 to $450.

On June 11, the Post reported remarks from academics at Peking University that China’s unemployment state may return to that experienced in 2020. It is anticipated that as much as 12% of the country’s population may encounter joblessness.

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