The global financial crisis has had a huge impact to China's export industry. In less than six months, thousands of factories have closed down in the Zhujiang River Delta development area.
Most of them are labor intensive industries such as of shoe manufacturing, textiles, toys, furniture, etc. The Association of Foreign Investment Enterprises located in Dongwan City estimates many more factories will be closed down soon.
According to an Eastern Daily report, the Association of Foreign Investment Enterprises estimates that by January2009, about 9,000 factories out of the 45,000 factories in Dongwan, Shenzhen, and Guangzhou will be forced to close down due to their orders being reduced sharply as a result of the current financial tsunami.
About 2.7 million mainland Chinese workers could lose their jobs by next year as a result.
According to the Chinese regime's official data, 67,000 medium and small enterprises have gone bankrupt since the start of this year, which has already caused 20 million people to be unemployed.
Meanwhile, the employment forecast for university graduate students is dim. Recently, many universities have received notices from enterprises that their recruitment conferences were canceled.
A First Financial Daily report says that many companies are cutting the number of their employees or are planning to do so. Some companies have also announced to stop their 2008-2009 recruitment plan
A staff at the Employment Consultant Center at Sun Yet-Sen University in Gongdong disclosed that up until now, only a few real estate agencies had visited the university. Besides the four state owned banks, all other banks have reduced their recruitment plan. Meanwhile, no securities companies had visited the university either.
According to the Eastern Daily report, even jobs viewed as being unpopular in the past have become hot. Several thousands of students have competed for a position in the Seismological Bureau or the Disabled Person's Federation, which were unpopular jobs in the past.
Many students also chose to further study in order to avoid the fate of being unemployed. Furthermore, the number of students that have applied for a master's study has sharply increased as well.