Working heart is in a panic. The textile industry in Jiangsu and Zhejiang is unaffordable.

Our country has 1 billion 300 million people and 240 million migrant workers. In 2008, an international financial crisis, 20 million migrant workers returned home unemployed, and then the government sacrificed a large-scale stimulus of $4 trillion, which shows that ensuring full employment is the core task of social stability in China. Four years later, the domestic macro-economy is facing a downturn risk again. Exports, as one of the economic troikas, showed negative growth for the first time in January 2012. The leading indicator PMI had been below 50 for months, indicating that manufacturing was heading for a downturn. Against this background, the Securities Times reporter has selected some labor intensive industries to conduct first-line research.

 

Textile and garment industry is a labor-intensive industry, and it is also an industry with high dependence on foreign trade. Securities Times reporters in the Yangtze River Delta region, some clothing and textile enterprises to find out, almost all heard is "high labor costs" voice.

 

"Recruitment is not difficult, the key is how much wages can be given." Wang Zhihao, general manager of Xinsheng weaving factory, said on the telephone. Xinsheng weaving is located in the Yangtze River Delta textile town of Shaoxing, the factory has more than 100 workers, is not a large-scale cotton spinning enterprises. In 2010, when reporters met him, he was being cotton prices soared to make a lot of headaches, after last year's adjustment, cotton prices have been difficult to go down, but encountered new problems.

 

"Workers'wages have to be raised every year, plus social security and various expenses, a month down to 4000 yuan, textile enterprises had meager profits, finally, the monthly profits were basically distributed by workers." Wang Zhihao said that in the past when the cost of cotton rose, indicating that the market demand is good, at least orders can be done, workers overtime wage increases are normal. There is no fluctuation in cotton prices now. Industry demand is general. Wages, bank interest and taxes are as many.

 

After ten years of painstaking management of the textile industry and several rounds of cotton raw material ups and downs, Wang Zhihao has never been so confused. He told reporters frankly, "Opening a factory to assume operational risks, but can not make money, it feels like working for others. If it hadn't been for the employees who had been with them for so many years, the factory would be closed. Now the private textile enterprises are not facing the problem of profit, but the problem of survival.

 

Yao Qijun, deputy general manager of Hangzhou Hanying embroidery apparel, said that the export orders of the industry this year are not satisfactory and there is no apparent shortage of labor in the past few years. However, behind this, the price of customer orders is getting lower and lower, the wages of workers are rising, and the enterprises are squeezed at both ends. According to reports, the company's wages are generally around 3000 yuan, basic package room and board.

 

Rigidity of labor costs has risen, constantly reducing the profit margin of textile enterprises in the Yangtze River Delta, intensifying the elimination of competition in the industry, and some enterprises moving inland have also been affected.

 

Zheng Yu, director of the Jiede Garment Purchasing Department, said, "This year the company's Anhui branch enrollment situation is very good, there are more than 1,000 people, wages open to 2700 yuan, 2800 yuan, workers in the local employment and work out of the same."

 

The factory was originally set up in Shanghai, where the company made export orders domestically by acquiring trading companies in the United States. In the last two years, the company has expanded its branches in Jiangsu, Anhui and other places to meet the needs of labor and domestic market development.

 

"Workers used to come to the coast to look for work, but now factories have to take the initiative to look for workers in areas with surplus labor. The labor supply and demand of textile industry in the Yangtze River Delta region are decreasing. Zheng Yu said that the relocation of many garment factories led to local employment and wage levels, resulting in further increases in labor costs in coastal areas. For example, compared with this year's recruitment in Anhui Branch, Jiangsu Qidong Branch, although there are many applicants, in fact, the last few jobs, it is estimated that workers compared a circle, disliked low income. This year, however, there has been no labor shortage in all factories.

 

Xu Gangfeng, research director of China Garment Network, said that from an international perspective, more orders flow to Vietnam, ASEAN and other areas with lower labor costs, the corresponding employment demand will be lost.

 

In addition, the Yangtze River Delta garment enterprises employment is also facing other industries in the area of competition. Unlike the older generation of migrant workers, the post-80s and post-90s groups now prefer to integrate into the city. They are less willing to go to relatively remote and closed garment factories and tend to work in urban areas even with lower incomes.

 

The rising labor costs in the Yangtze River Delta region are also forcing enterprises to transform and upgrade. Jiangsu Shengze textile and chemical fiber industrial cluster is a living case.

 

Shen Yingbao, deputy secretary-general of the Eastern Silk Market Association, said that the trend of rising labor costs is inevitable. In order to survive and develop, enterprises can not only transfer to low-cost areas, but also improve profit margins through their own efforts. For example, Shengze enterprises in the region to innovate as the leading, better technical transformation, rely on new varieties and new patterns to win customers and profits. Last year Shengze's fiscal revenue exceeded 4.6 billion yuan, an increase of more than 40%, a record high, 90% of which came from the textile industry.

 

"The so-called labor shortage can be said to be a false proposition, the key enterprises pay how much, and how much profit to support it." Shen Yingbao said. Shengze average wage of more than 3000 yuan, higher than the surrounding areas, this year the recruitment and employment of enterprises are relatively stable.