Are wage cuts coming in 2022?What is the future of China’s manufacturing industry?

2022-04-25 0 By

Manufacturing has always been one of the major industries in China.But now, the development of the manufacturing industry has appeared a crisis, many factories began to lay off staff, pay cut to employees, and even some have announced to close down.Watching this scene, I am worried about the future of The Korean manufacturing industry.Data showed that manufacturing added value accounted for 32% of GDP.With the rapid development of manufacturing industry, a large number of jobs have been created for our country.Combined with domestic labor costs low, vast land and many other advantages, the scale of the factory continues to expand.At present, China’s manufacturing industry is in the forefront of the world.However, as the industry grows, its weaknesses also become apparent.First of all, China is not good at manufacturing high-end products, including aircraft and medical equipment, which has a lot of room for improvement compared with developed countries.Due to the limitation of low-end manufacturing, the products produced by major factories are homogenized. In order to gain competitive advantage, factories can only attract orders by lowering prices. Therefore, the profit margin of manufacturing industry is small.In addition, manufacturing plants keep producing as they compete, creating excess capacity that increases the risk of a bubble economy bursting.Therefore, there are many problems to be solved in the development of manufacturing industry.To make matters worse for the industry, the outbreak of COVID-19 in 2019 quickly stabilized the situation in China, and factories resumed production one after another. However, the chaotic situation abroad caused a large number of factories to shut down, resulting in the loss of large orders for Chinese factories.In the context of scarce orders, domestic factories compete more fiercely, and peers begin to lower their offers, some even break through the lowest price, forming a vicious circle, and industry profits shrink again.Factory orders halved in January last year from a year earlier, according to a factory owner in Zhejiang province.In order to survive, the factory had to increase income and reduce expenditure. The factory had to lay off some employees.In addition to layoffs, other factories are cutting wages.The factory did save labor costs, but faced with wage cuts, the employees said they would quit!Workers are leaving their jobs in droves, quitting to start their own businesses or switching to delivery or food delivery.We thought, the factory is more hard to work, and now can not earn money, it is better to resign.Delivery and express delivery are equally hard work, but more work, more free working hours.A mass exodus of employees has stymied the future development of manufacturing.No matter what industry, there is no sufficient labor force, there is certainly no way to produce and sell later.Manufacturing has entered a vicious circle, interlocking, and if it stays that way, the industry will remain depressed.Many people wonder why there is still a shortage of labor in the manufacturing sector, with tens of thousands of fresh graduates each year and many of them unable to find jobs after graduation.It is observed that young people do not like to work in the manufacturing industry, the main reason is that the occupation is hard, the workshop environment is not good.Secondly, work at ordinary times subject to discipline, can not be late to leave early, leave to deduct money.In addition, working in factories is not as profitable as people think. Many workers earn up to 7,000 yuan a month because they work overtime frequently. If they do not work overtime, they only earn four or five thousand yuan.If you make a mistake during the work, you have to deduct the penalty for the mistake.Some graduates can not find a job, they will continue to stay in school for further study, graduate or master.Some students with a mediocre education, but not the ideal job, will temporarily work as a delivery boy.The observation found that the delivery men are generally young, unlike a few years ago, the delivery of food are some middle-aged people.As a matter of fact, this phenomenon is detrimental to the overall development of our country, and young people should find more meaningful jobs instead of setting their sights on the position of delivering food with little development space.