Many Chinese migrant workers are struggling to find jobs as economic growth in the world's second-largest economy continues to slow.
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| Many migrant workers in China are struggling to find jobs as economic growth in the world's second-largest economy continues to slow. (Source: SCMP) |
In the southeastern suburbs of Beijing, scores of migrant workers struggle day in and day out to find work in the sweltering summer sun. For less than the cost of a cup of coffee, a migrant worker in China’s largest city can rent a place to sleep for the night, but for many, that’s out of reach.
Prospects are dim.
Wang Ke, 36, a migrant worker from Henan in central China, had not had a decent meal in a long time. He and a group of freelance workers often roamed construction sites looking for work. But not every day was lucky. The group often returned disappointed, wondering when they would be able to afford their next meal, and whether they would have enough money to rent a place to sleep for the night.
“I am willing to do any odd jobs, but I have had no luck these past few days. Most of the workers here are like me,” said Mr. Wang.
Unable to afford food and shelter, migrant workers like Mr. Wang often wander the streets at night looking for deserted areas to rest.
Yuan Xin, a professor of demography at Nankai University in Tianjin, said the continued exodus of many labor-intensive industries from Beijing was the main reason why many migrant workers' chances of finding work in the capital were becoming increasingly bleak.
Recently, the Beijing government has relocated many “non-essential units and organizations” out of the city to neighboring Hebei Province. Many manufacturing enterprises have been severely affected by having to cut labor, especially low-skilled migrant workers.
“We are in dire straits and are even worse than beggars,” Mr. Wang lamented.
According to official statistics, China had about 296 million migrant workers by the end of 2022. In the first quarter of 2023, the average monthly income of migrant workers fell to 4,504 yuan, from an average of 4,615 yuan last year.
While it is difficult for young migrant workers, the outlook is even bleaker for China’s older generation of migrant workers – who are often too old to be building security guards, office workers or electronics factory workers. Meanwhile, jobs that require rapid knowledge updating are mostly only recruiting young workers.
To pay for their daily lives, migrant workers – most of whom come from rural areas – have to work hard every day and cannot retire because they do not have pension insurance or enough savings.
In 2022, although economic growth is quite gloomy and many factories are operating at a standstill due to travel restrictions to prevent the Covid-19 pandemic, the demand for temporary jobs such as security guards, workers for Covid-19 testing areas, delivery staff, etc. will increase, creating more opportunities for immigrant workers.
“However, as soon as the lockdown was lifted, job opportunities for us migrant workers dwindled,” complained a worker in his 40s.
Income cut
Compared to older migrant workers, young temporary workers – mainly students working during the summer holidays – have more opportunities. But this year, as the unemployment rate for 16-24 year olds has been on an alarming rise and is expected to rise even higher in July and August, the number of people looking for temporary work has increased, and wages have dropped significantly.
According to Mr. Li, the monthly salary for stage installation workers is currently about 3,500 yuan, including food and accommodation, working 12 hours a day, 30 days a month, usually without days off. This is down from the average monthly salary of 3,800 yuan last year.
In manufacturing hubs in southern China, while demand for young workers remains strong, incomes have fallen significantly from a year earlier, due to a drop in overtime at many small and medium-sized enterprises.
“Factories typically offer around 15 to 17 yuan per hour for temporary workers, down from 18 to 20 yuan last year,” said a recruitment agent in Guangdong.
While many processing and export factories tend to cut full-time employees and hire more temporary workers to save operating costs, daily living expenses remain almost unchanged, including food and accommodation.
“Most of the workers in our factory are temporary workers. I pay each one about 260 yuan a day for more than 12 hours of work,” said Wang Jie, a footwear manufacturer in Dongguan, Guangdong. In the face of economic difficulties, he has cut his full-time staff by two-thirds to less than 20 people to save costs.
“Before the epidemic, we used to be paid 7,000 yuan a month or more during peak season, but now we only earn about 5,000 yuan a month, including a free meal,” said a worker at an electricity company.
The fact that many local factories have reduced production output and cut staff has forced many workers to leave for big cities to find work.
The sharp decline in demand and employment for migrant workers can be seen as a barometer of the slow recovery of the Chinese economy, especially in the context of a real estate slump and declining export demand affecting manufacturing sectors, reducing consumer and investor confidence.
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