Unemployment Soars in Shenzhen Due to Manufacturer Close Down

Recently, due to the impact of successive mass lockdowns in Communist China, rising raw material prices, sluggish domestic demand and massive loss of export orders, Shenzhen’s economy has been rapidly declining. Many manufacturers are closing down. Job seekers are also finding it more difficult to find jobs.

According to a Gettr video post on Sept 10, a factory was offering jobs for 16 yuan per hour, which is around US$2.5, in an hour there were hundreds of people lining up applying for the job. In Shenzhen’s Pingshan 138 Industrial Zone, most manufacturers are no longer hiring. A man inquired about wages at an electronics factory that might be hiring after many failures at other places, only to find out that the payment can only cover his housing, not even food, which is much worse than previous offerings.

People are taking advantage of the economic downturn to find special business opportunities, which also demonstrates the local recession. According to a local business owner, since this March, he and his partners, by investing 100,000 yuan each, started to invest in business in Shenzhen, Dongguan, Huizhou, etc. Their business model is to collect a variety of equipment from closed factories, then hire professionals to maintain and repair them, and store them in the warehouse, later sell to the newly registered companies. So far, their business model has been quite successful, in six months, each of the business partners has made $433,000.

As was reported, in 2022, there are more local manufacturers that have closed down, including both large and small ones. The success business model is due to the fact that cnce the factories close down, the equipment become worthless. People can collect a truck of equipment for just a thousand yuan or $150. The equipment is sold by weight without selection and categorization. When the factories are heavily in debt, they have to get rid of the equipment as soon as possible, before completely losing the value.