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Financial Crisis Forces China's Migrants Back Home for Work

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The migrant worker knew little about the "financial storm" that has swept the world. The only thing he was worried about was where he was going to find his next job.

Several days ago, 30-year-old Cai Haihua from rural area of east China's Jiangxi Province was a worker in a small factory making machinery parts in the booming Zhejiang Province. After months with few orders, the factory decided to close one of the production lines and asked its more than 40 workers to do shift work with less working hours.

Although not laid off, Cai saw his salary reduced from 1,700 yuan (US$250) to less than 600 (US$88).

He has planned to seek a job in hometown.

"I could find something to do (to earn money) anyway," he said.

For a similar reason, 33-year-old Yu Yuanhua from the Guangfeng county of Jiangxi quit her job in a clothes factory in Cixi of Zhejiang a month ago, where she had worked for about five years.

She tried to change her company there, but it is hard because labor supply exceeded the demand.

As a result, both Cai and Yu are among the migrants returning home amid the financial crisis that closed or affected a large number of Chinese companies.

Currently, there is no official number as to how many migrants returned to their hometowns in the financial crisis, but according to statistics released by some provincial governments, the "home rush" is of no small scale.

In east China's Jiangxi Province with 6.8 million farmers working outside the province, 300,000 returned home. In Anhui, the numbers are 8.2 million and 400,000 while in Hubei, 7 million and 700,000.

Although it is still more than one month to go before the annual "spring transportation", many railway stations were already full of migrants.

"Starting from last month, the number of passengers from Guangdong, Zhejiang and Fujian increased," said Qi Guijin, who worked in the railway station of Nanchang, capital of Jiangxi. The provinces he mentioned are in affluent east and south China.

"Such a homebound wave of people, if not handled properly, could lead to social problems," said an editorial in the Guangdong-based Zhujiang Evening News.

It cited the statistics by the National Development and Reform Commission showed that in the first six month this year, 67,000 small or medium-sized companies closed. In the second half of 2008, more followed suit. It is not known about the percentage of migrant workers in such companies, but the editorial believed that such a large number of closures would affect many migrant workers.

"Behind a migrant is a family which needs to be supported," it said, calling on local governments to address the issue.

Some others saw the positive side of the issue.

In Jiangxi, Wan Jiannong, head of the labor bureau, claimed the "homebound rush" helpful to ease the labor drought in the province's 94 industrial parks.

"In the past few years, a large number of workers flowed out. The gap used to be more than 200,000," he said.

Starting from last decade when the rapid inflow of investors generated more jobs in cities, the number of migrant workers soared quickly. Central government figures showed that it stood at60 million in 1992, 120 million in 2003, and 210 million this year.

Wan's view was shared by Li Weiping, Party secretary of the Lianshui County in eastern Jiangsu province.

"While many young and middle-aged people working away from home, leaving only the elderly and the children back home, the lack of laborers greatly hindered local development," he said, pointing out that such a phenomenon was common in rural areas of other parts of China.

Measures have been taken.

In Anhui, 150 million yuan has been earmarked to help returned farmers start their own businesses in the hometown.

Chen Xiaoling, vice head of the provincial labor and social security department, pledged to provide more training for farmers. "This year training for more than 20,000 people. In 2009, we will offer training for another 50,000," she said.

The southwestern Chongqing municipality has decided to attract more local farmers back to start businesses. By 2012, the number is to reach 180,000.

In Jiangxi, farmers like Yu were introduced to new posts after they returned.

Yu Yuanhua found a job in the county seat of Guangfeng, also in a clothes factory.

"I received 1,500 yuan (US$220.5) this month," she said, with a beaming smile on her face, "I will not work away again."

(Xinhua News Agency December 10, 2008)