A relatively sluggish economy in the Pearl River Delta region and rapid urbanization in inland areas have led to a decline of migrant workers in Guangdong province in the first half of the year, according to industrial sources.

Cai Yinggen, who runs a small garment factory in Shantou, in eastern Guangdong province, said that the number of migrant workers has gone down a lot in the city, which is one of China's major garment and toy manufacturing bases.

"The economy was not so good in the first half. Workers were demanding higher salaries, but we could not afford to pay them more," Cai said.