The growing gap between what enterprises offer in terms of salary and what workers expect is becoming a major challenge for Chinese industries. As a result, many employees are changing jobs frequently or returning to their hometowns in search of better opportunities. This issue has become a recurring problem for China’s manufacturing sector, but this year it has arrived earlier and more intensely than expected.
Guangzhou Jinghua Optics Co., Ltd., a mid-sized optical equipment manufacturer, is currently struggling to find enough workers. Despite offering a monthly salary of over 3,000 yuan—considered relatively high in the industry—the company still can't fill its positions, even before the Spring Festival. "It's not just about wages," said Huang He, the company’s deputy general manager. "Many people would rather go home and not move forward during the holiday."
In a large hotpot restaurant in downtown Guangzhou, waitress Liu Huayu, originally from Hunan, showed little enthusiasm for her job. When asked if she was afraid of being fired, she simply replied, “I don’t want to do it anymore.†Her monthly income is above 2,000 yuan, but she feels that the work is too demanding and the environment unattractive.
This labor shortage isn’t limited to one region. In Guangzhou’s Yonghe Development Zone, many construction sites were nearly empty during the New Year period. Some workers had returned to their hometowns early due to concerns about travel difficulties and the early timing of the festival. “We used to have plenty of workers after the Spring Festival, but this year it came much earlier,†said Luo Ying, an employment agency owner.
The construction, catering, and garment industries are all feeling the pressure. In Dongguan’s Humen Town, where many clothing factories are located, most companies have posted signs stating they are short of staff. In one workshop, only 20 out of 70 stations were occupied. Similar situations are reported in other regions, with companies struggling to keep up with demand.
Shaoxing City, known as Asia’s largest textile center, is also experiencing anxiety. Although it hasn’t faced a full-scale labor shortage yet, companies are already worried about how they will manage after the Spring Festival. This year, local authorities in Sichuan and Chongqing refused to send migrant workers to Shaoxing for the first time, signaling a shift in worker behavior.
According to Zhang Hao, deputy director of Shaoxing’s Employment Administration, over 75% of migrant workers now expect at least 1,800 yuan per month, along with good working conditions and regular pay. But many local companies are still unable to meet these expectations.
In Yiwu, the world’s largest small commodities market, business owners are also concerned about employee retention. The wage gap remains a key issue, leading many workers to seek better opportunities closer to home. Some even refuse to return to cities like Guangzhou unless offered significantly higher pay.
As the Spring Festival approaches, companies are trying creative ways to attract and retain workers. Some are offering free train tickets, while others are encouraging employees to bring family members or fellow villagers. In some cases, companies are even paying premium prices for tickets to ensure their staff can return safely.
However, rising wages are putting pressure on businesses. Many companies expect a 10–15% increase in salaries after the holiday, but some, like sock manufacturers in Zhejiang, are struggling to afford these increases. With rising costs of materials and raw goods, profit margins are thin, making it hard to raise wages without cutting into profits.
Some companies are considering moving operations back to their hometowns in lower-cost regions. Others are investing in automation or trying to improve brand value to remain competitive. Experts believe this labor shortage could be a turning point, pushing industries toward modernization and long-term transformation.
For now, the situation remains challenging. Companies must balance the need to attract workers with the financial realities of operating in a tight labor market. The future of China’s manufacturing industry may depend on how well it adapts to these new conditions.
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