Enterprise Layoffs And Hedge &Nbsp; &Nbsp; Textile And Clothing Industry Is Alert To 2012 Migrant Workers' Unemployment Tide.

"The enterprises we have recently come into contact with are not very willing to take orders. Enterprises are obviously reducing production."

In December 7th,

"Next year, the number of enterprises may be reduced."

Chen Bingxin said companies that cut production will have to lay off workers.

By the end of 2008, the financial crisis had caused about 20 million migrant workers to return home in China.

Now, the Yangtze River Delta and the Pearl River Delta have begun to see the reduction of production and the unemployment of migrant workers.

Corporate layoffs and hedge

"Next year, at least 10% of the companies are going to go bankrupt."

Gao Ligen, President of the Yuhang clothing association, said, "now, the situation at the end of the year and the beginning of next year is even more serious than in 2008.

Big businesses are strong enough to resist risks, and they can barely sustain them. Small businesses will be more serious.

According to the introduction of Gao Li, due to the lack of orders, the biggest cost that the enterprise undertakes is manpower cost at present, calculate three danger, the enterprise should pay nearly 4000 yuan for each worker every month.

Some enterprises began to take the risk of layoffs to reduce spending and prepare for the winter.

"We are laying off workers this year."

Liang Liang, the owner of a textile factory in Yiwu, Zhejiang, told reporters.

The clothes produced by Lou Liang's factory are mainly exported to Europe and the United States. Its customers are the most famous department stores in the United States. "A few days ago, the general manager of American customers came to our company and indicated that he planned to continue to reduce orders next year due to the decline in the US economy."

Lou Liang said.

In fact, from the beginning of this year, orders for Lou Liang have been reduced to 60%, "the production line has been closed down, and the number of workers has been reduced by 50%.

In addition to the large number of migrant workers engaged in primary garment processing, our factory signed 270 technical workers at the beginning of the year, but only a dozen of them were renewed by the end of the year, because the benefits were not good enough to reduce staff costs.

In Guangdong, a similar situation is also happening.

Zhou Yang, a factory manager in Guangdong who supplies musical instruments to WAL-MART and other enterprises, is embarrassed to say, "to tell you the truth, I have just closed two factories in the second half of the year."

According to Zhou Yang, there are 500 primary labor workers in each factory, so more than 1000 workers have already returned to their homes after the two factories are closed.

The disbanded workers came from Sichuan, Shandong, Gansu and Guangxi, mainly migrant workers.

"Most of these workers signed temporary contracts."

Both Lou Liang and Zhou Yang indicated that production and closing factories like them can happen everywhere.

The closure and merger of small factories is common.

One thing that can be corroborated is that the head of a gold bank said that, like the financial crisis at the end of 2008, business owners were unwilling to spend more money on the real economy, but instead they would buy gold with cash to preserve their strength.

According to him, after the layoffs and the purchase of gold, most of the manufacturing enterprises are in Jiangsu and Zhejiang provinces.

As the workers close to the end of the year need to go home for the new year, the layoffs do not encounter too much resistance from workers.

Lou Liang told reporters, "in previous years, we have ample orders, which will double the workers' wages and ask them to stay in the factory for the Spring Festival."

It is understood that in recent years in Shandong, Zhejiang and other places one after another, migrant workers returned home early to celebrate the new year.

The Ministry of Railways has also arranged to arrange the pport capacity of migrant workers returning home.

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2012, employment is depressed?

"The enterprises we have recently come into contact with are not very willing to take orders. Enterprises are obviously reducing production."

Chen Bingxin, director of the Yuhang Economic Development Bureau, told reporters that "next year's employment may be reduced."

Because it is difficult to determine whether the buyer can pay the bill on time, many factories have adopted a conservative strategy, that is, to reduce orders.

"Because of the depressed US market, even in the face of this situation, American buyers still refuse to increase their prices."

Lou Liang said.

In addition, according to a reporter from another large garment processing enterprise in Yuhang, many orders have been pferred to Bangladesh, Vietnam, India and other countries due to the huge price gap of human resources.

"Compared to the cost of 4000 yuan per person per worker in China, the wages of workers in Vietnam and Bangladesh are only 1000 yuan."

Data released by China logistics and purchasing Federation (CFLP) in December 1st showed that China's official Manufacturing Purchasing Managers' index (PMI) dropped to 49 in November, the second consecutive monthly decline and the lowest level in March 2009.

Manufacturing PMI is a composite index weighted by five main diffusion indices.

PMI data is higher than 50, reflecting the overall expansion of manufacturing activity, less than 50, reflecting the shrinkage of manufacturing activities.

"Now the market is not good, next year's situation will not be optimistic."

Zhou Yang told reporters that "if the order is not good enough, it will be a difficult problem for migrant workers to find jobs next year."

Historical data show that by the end of 2008, a large number of labor intensive enterprises in coastal areas of China had experienced a large number of failures, resulting in 20 million migrant workers returning home.

Then in early 2009, the government announced the 4 trillion rescue policy. "So the unemployment problem of migrant workers was solved quickly, and even the shortage of migrant workers appeared."

Farmer problem expert He Xuefeng said.

However, "there is a series of overcapacity and inflation problems in the government's bailout policy, and it is not expected that there will be another big policy to rescue the market next year."

According to the survey data of China Agricultural University and the State Council Development Research Center, the income of migrant workers accounts for about 50% of the annual household income of farmers.

The survey shows that during the financial crisis in 2008, many migrant workers were laid off or directly unemployed. The return of migrant workers to rural areas had a great impact on the incomes of farmers' families, and more than 50% of them were affected.

The main areas for employment of these migrant workers are in the Pearl River Delta and the Yangtze River Delta.

At present, the outlook for this round of economic crisis is not clear. Many of the business people interviewed by reporters are not optimistic.

The machinery industry association predicts that the economic stabilization will only take place in the second half of 2012.

"In the face of economic crisis, the biggest victims are migrant workers.

Because migrant workers lack social insurance and unemployment insurance is not guaranteed, their incomes will drop a lot.

Even some farmers will return to poverty. "

"Many people go back to the countryside, while young people choose to roam around the city, which brings about many social problems," said Li Shi, an expert in the reform of income distribution.

Some small and medium-sized enterprises are reducing their production scale due to a large reduction in orders.