The Shoe Market Is Weak, And The Demand For Employment Is Not Strong.

After the financial turmoil sweeping the globe, the price of raw materials in mainland China has skyrocketed and the cost of employment and financing has risen rapidly. Meanwhile, rumors of "closing down tide" and "labor shortage" of small and medium-sized shoe enterprises in the Yangtze River Delta and the Pearl River Delta are rampant. This contradiction is fact or speculation? In May this year, Chinese shoe industry experts interviewed in Wenzhou, Hangzhou, Chengdu and other places found that SMEs face the challenge of crisis is a fact, but the general "labor shortage" is just a rumor.

The market is weak and the demand for employment is not strong.

According to Mr. Zhang, general manager of a shoe enterprise in Hangzhou, the business crisis extended the financial crisis in 2008, domestic demand was not strong, foreign trade was restricted, orders reduced by 26%, enterprises' orders could not meet production capacity, they could only give employees leave or training, and now there was no shortage of general practitioners.

Wenzhou's Lucheng district has 80% shoe factories in Wenzhou. According to Mr. Jiang Feng, an official of Shuang Yu Town, "this month (April), 80% of the shoe factories are in a state of shutdown." "I'm talking about stopping work, not bankruptcy." In the Lucheng industrial area on the twin islands, a large number of young workers are shopping in the streets, which is hard to imagine before.

All the recruitment cards have been dismantled.

This year, we have not seen the recruitment cards hanging around the door of shoes and clothing enterprises.

In the Gao Xiang Industrial Zone, He Yancan, deputy general manager of Jill fashion company, told the brand observer Tan Ru: "this year's market is not optimistic, and funds are tight. We will not press goods." We still take the "order cooking" production mode. At the moment, the order is almost the same as last year, but it is obviously not as worrying about employment as it did last year.

Labor supply exceeds demand

"Labor shortage" means less supply of labor. After April this year, the number of migrant workers in some job hunting places in Wenzhou began to increase. Every Friday night, the Middle School Road in front of the Wenzhou talent tower will encounter road blocks.

Tan Ru, a shoe factory owner in Chengdu, told the brand Observer: "I thought this year will resume the scene of recruitment difficulties last year. I did not expect that this year it would be easier to recruit workers. First, the manufacturing enterprises will be reduced. Two, the migrant workers going to the coastal areas will be reduced, and the migrant workers staying in Sichuan will get more."

The market is like this. If the supply exceeds demand, it will increase in value. If supply exceeds demand, it will depreciate. The same is true for the labour market. When enterprises are reduced and employment is reduced, labor shortage will be alleviated or eliminated. Tan Ru, a brand observer, predicts that if the country does not have policies to stimulate domestic demand, the shoe and clothing market will not change.