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Job market still grim in Guangdong as exports falter

(Xinhua)
Updated: 2009-04-09 14:27

As demand dries up in the overseas market, many exporters have turned to tapping the domestic market that they previously overlooked. But it is not easy to build up domestic orders that currently account for less than 10 percent of sales, Wu said.

The rising cost of labor is another headache for exporters. They have to pay at least 2,000 yuan (US$294) per month on average per worker to cover wages, social insurance and other sundry expenses.

Related readings:  Official: job market still 'grave' for graduates  Migrants' job situation in cities better than expected  Graduates swarm job fair for death business  Job market stable as companies fold

In the face of eroded profits and an uncertain future, foreign-owned businesses, which control the bulk of Guangdong's foreign trade, have pruned back investment. A recent survey indicates that Guangdong Province approved just 699 foreign direct investment projects in the first two months of this year, down 48.6 percent from the same period last year.

In 2008, 2,542 foreign-funded enterprises in Guangdong closed or left the province, up 14.1 percent compared with a year earlier.

Faced with mounting pressure on the job market, Guangdong is searching for ways to assist job hunters.

In cooperation with labor-exporting provinces such as Hunan, Sichuan and Jiangxi, Guangdong is now offering training programs to improve workers' skills.

Chambers of commerce are also stepping in to help. In March, the American Chamber of Commerce in south China urged its members to continue recruiting during the downturn in anticipation of the coming recovery.

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