In Guangzhou, one of China's manufacturing hubs, there has been an increase of 130,000 passengers leaving from the station everyday. This exodus phenomenon is caused by the loss of jobs in many factories.
The most badly hit export companies are toy, shoe, and furniture manufacturers.
There have been also reports of social unrests and demonstrations.
4 comments:
The $600 Billion stimulus package have been passed and China's central bank has announce interest rate cuts to encourgae landing to small and medium sized businesses.
This may be true, but I would like to know where these people expect to go. This is not an isolated problem, so do they expect that a stable place to go exists?
It is interesting that furniture manufacturers are one of the worst hit sectors. I think that this says that people are only buying the necessities in, not buying for the future.
Since factories are closing down in cities, its seem there are more work in the country now. "Once in the interior, the workers will have less incentive than in the past to return to the coastal provinces. Rising grain prices have made farming more profitable. The Chinese government announced a rural land reform policy last month that could spur some farmers to stay on their land and make better use of it.
A growing number of factories have opened in the interior provinces as well. Wages are still lower than on the coast, but have risen quickly in recent years." as qouted in the following New York times Article at http://www.nytimes.com/2008/11/14/world/asia/14china.html?pagewanted=2&_r=3&sq=Factories%20shut,%20CHina%20workers%20are%20suffering&st=nyt&scp=1
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