The growing gap between the salaries offered by companies and the expectations of workers has become a major challenge for many businesses, especially in China's manufacturing sector. As a result, employees frequently switch jobs or return to their hometowns in search of better opportunities. This issue is no longer just a seasonal problem—it’s becoming a long-term crisis that companies are struggling to address.
In Guangzhou, for example, companies like Guangzhou Jinghua Optics Co., Ltd. are facing severe labor shortages. Despite offering wages above 3,000 yuan per month, they still struggle to fill positions, even before the Spring Festival. According to Huang He, the company’s deputy general manager, it's not just about money. Many workers prefer to go back home rather than work during the holiday season.
Similarly, in a large hotpot restaurant in downtown Guangzhou, waitress Liu Huayu said she doesn’t want to work anymore. “It’s not about the salary,†she explained. “I just don’t want to do this job anymore.†Her monthly income is over 2,000 yuan, but the working conditions and pressure have pushed her to consider leaving.
This labor shortage isn't limited to one industry or region. Construction sites in the Yonghe Development Zone were largely empty, with only a few active projects. Employers like Luo Ying, an employment agency owner, reported that the shortage has arrived earlier than usual. Workers returning from the Asian Games haven’t come back, and the situation is getting worse as the Spring Festival approaches.
In Dongguan, where the clothing industry is concentrated, many factories are posting signs that read "No Workers Available." In one workshop, only 20 out of 80 stations were occupied. Meanwhile, in Shaoxing, a major textile hub, companies have started worrying about post-holiday staffing. For the first time, local authorities have rejected recruitment efforts from remote regions, signaling a shift in migrant worker behavior.
Zhang Hao, a representative from the Shaoxing Employment Administration, noted that migrant workers now have higher expectations. Over 75% of them want at least 1,800 yuan per month, along with good working conditions and regular pay. However, many companies in Shaoxing can't meet these demands.
In Yiwu, a global trading center, business owners are also anxious about how many workers will return after the holidays. The director of Yiwu’s employment management, Huang Yunlong, believes the main issue is the mismatch between what companies offer and what workers expect.
Some workers are choosing to stay closer to home. Huang Jun, a Hunan native in Guangzhou, said he’s not in a hurry to find a job. “There are more new factories near my hometown now. It’s easier to find work there.â€
To retain employees, some companies are going to great lengths. For instance, Taizhou’s Oulusha Company had its leaders greet workers with a 90-degree bow. Others, like the Chord Garment Factory in Dongguan, are booking expensive train tickets for employees to ensure they can return after the holidays.
Even companies are starting to offer family-friendly policies. A Foshan-based firm advertised for “husband and wife†workers, emphasizing the importance of family ties in attracting talent. Some companies are even paying referral bonuses to encourage workers to bring in friends and relatives.
According to Guangzhou Railway Group, over 650,000 tickets have been booked for Spring Festival travel, showing how critical this period is for companies trying to keep their workforce intact.
However, rising wages are also putting pressure on businesses. Many companies expect wage increases of around 10% after the Spring Festival, which could be difficult to sustain, especially in industries with thin profit margins. In Zhejiang’s Zhuji, a major sock production area, factory owners say they’re already operating on the edge of profitability.
Professor Wu Yi from Guangdong Business School suggests that while the labor shortage is a challenge, it could also be an opportunity for industrial transformation. Companies need to focus on upgrading, automating, or relocating to less competitive regions. The government should support this transition rather than just focusing on short-term fixes.
Overall, the labor shortage is a complex issue with far-reaching implications. As workers become more selective and companies face increasing costs, the future of China’s manufacturing industry is uncertain—but also full of potential for change.
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