China’s Chinese New Year exodus threatens more factory disruption

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China’s Chinese New Year exodus threatens more factory disruption
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Many workers don’t plan to return to work until after Feb 5, the day of the traditional Lantern Festival. Read more at straitstimes.com.

BEIJING - When Mr Liu Junde was told by his boss he couldn’t take 20 days of leave from his factory job in Yiwu city in China, he promptly quit.

With China’s 296 million migrant workers on the move this year, factories and local governments are bracing for disruptions during a longer-than-usual holiday period. China has seven days of public holidays for the Chinese New Year – which runs this year from Jan 21 - 27 – but many workers don’t plan to return until after Feb 5, the day of the traditional Lantern Festival.

Labour shortages were a major problem for many factories in 2020, when China locked down most of the country starting from the Chinese New Year break and then reopened in the following months. Urban employment and average hours took about three months to recover, according to a study published by the Reserve Bank of Australia.

Mr Wu Jijiao, general manager of Yiwu Hongsheng Toy Co, said the company is reimbursing returning workers’ travel expenses. He has resorted to hiring temporary day workers since Jan 1 as many full-time employees left to go home. The southern province of Guangdong, which has China’s biggest regional economy, organized for companies to visit Guangxi province, a major exporter of migrant workers, in December to recruit workers, with 4,500 jobs offered.

Mr Wei Guofu, 35, is thinking of switching jobs after Chinese New Year. The fashion accessories factory Mr Wei worked at was shut for two months last year due to a lack of orders, forcing him to find temporary work as a courier and doing odd jobs at other factories in Yiwu. His income plunged by half to just over 30,000 yuan in 2022 from the previous year.

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