Orders reduced in the second half, and migrant workers from textile companies in the Pearl River Delta had no choice but to return home

Affected by factors such as declining consumer demand in Europe and the United States and increasing labor costs, processing trade companies in the Pearl River Delta region saw fewer orders in the second half of the year, and the sudden drop in profits became more prominent. Due to insufficient employment and rising living expenses, many migrant workers have taken the initiative to resign and return to their hometowns.
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​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​There are still a large number of migrant workers dragging their luggage and checking in at the Dongguan Bus Station. It is understood that workers who returned home chose to end their working careers in the Pearl River Delta partly because of unemployment, partly because factories were under-operated, their incomes dropped, and their living expenses increased.
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It is reported that as labor costs increase and orders decrease, the profits of labor-intensive enterprises in the Pearl River Delta region have dropped rapidly. In order to get out of the predicament as soon as possible, many Hong Kong companies have carried out industrial upgrading. A Hong Kong-owned knitting company in Dalang Town, Dongguan invested 100 million to purchase 500 computerized looms. One computerized loom is equivalent to the workload of 28 skilled workers.
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Liao Huanhui, chairman of Greater China Region of Hong Kong company JARDEN, pointed out that the company laid off more than 80% of its technicians, reducing the number of technicians from 6,000 to 1,000, and used the funds for product research and development and the purchase of advanced equipment.
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According to the analysis of the Dongguan Taiwan Business Association, nearly 20 % of the Taiwanese enterprises in Dongguan have set up new plants and production lines in foreign countries or directly relocated to the Pearl River Delta. A large number of workers have been transferred. As the urban transformation of the Pearl River Delta advances, more and more companies are considering opening branch factories in the mainland and moving the processes completed by high-density human resources to the inland, which will cause more migrant workers to withdraw from the Pearl River Delta.