“In previous years, workers will return home after the 20th lunar month, until they return to work on the 15th day of the first month, usually about 15% of frontline employees are lost.” This year, we worked until the 29th day of the twelfth month, and started work on the seventh day of the first month, and the return rate is nearly 100 percent.” Li Miao, general manager of the domestic Marketing Department of Lege Shares, pointed to the busy production line and told the China Securities Journal reporter, “When overseas orders surge, the initiative of ‘Spring Festival in place’ has solved our urgent needs.”

Industry insiders pointed out that the “local New Year” effectively alleviated the labor shortage and recruitment difficulties that often occurred in the manufacturing industry after the Spring Festival in the past. The rate of return to work has increased, the start time after the festival has been significantly advanced, and some enterprises even do not stop production during the Spring Festival, which is expected to significantly thicken the net profit of the manufacturing industry in the first quarter. However, the employment gap in the manufacturing industry is still expanding, and it is necessary to make overall planning in many aspects to truly crack the problem of labor shortage and recruitment.

Solve urgent problems

The situation of Lege shares is a microcosm of Zhejiang, a major foreign trade province, to start work after the festival. Taking Ningbo City as an example, the data show that the number of employees from other provinces staying in Ningbo this Spring Festival reached 1.295 million, an increase of 666,000 compared with last year’s Spring Festival; The rate of staying in Ningbo reached 51%, an increase of 20 percentage points over the Spring Festival last year, effectively alleviating the problem of labor shortage and recruitment difficulties after the Spring Festival.

VM600 RPS6U

Since the third quarter of last year, overseas orders have soared, and enterprises are tense in labor, and the “local New Year” lets enterprises breathe a sigh of relief. Li Miao revealed: “Our orders are full, has been scheduled to the end of May and early June, and the production capacity after the festival has reached more than 90%.” Thanks to ‘Spring Festival in place’, otherwise it is difficult to keep up with production capacity.”

A person in charge of a foreign trade enterprise in Hangzhou told the China Securities Journal reporter: “In August last year, the order was placed in March this year. At that time, we were very worried about the production shutdown during the Spring Festival this year, and we have been mobilizing workers to stay behind, and even pushed away many orders. ‘Spring Festival in place’ was a real surprise for us. So far orders have been delivered on time as there has been no stoppage before or after the holidays.”

The “local New Year” has greatly increased the return rate, and the difficulty in recruiting workers has been greatly alleviated. China Securities Journal reporter in Zhejiang Zhongcheng subsidiary Zhongli synthetic materials research learned that the production line workers have all arrived at the post, the Spring Festival did not stop work. “In previous years, the return rate of workers after the Spring Festival was about 90%. This year, 160 frontline employees have not returned home, almost no staff turnover, and after the Spring Festival, there is no need to recruit as many workers as in previous years.” Zhejiang Zhongcheng chairman Chen Jian said.

Li Miao told the China Securities Journal reporter: “In the past, after the Spring Festival, the labor shortage was the most severe time. Due to the ‘local New Year’, the return rate this year is more than 95%, in addition to the expansion of production lines need to recruit workers, old employees are basically there, so that our recruitment pressure is much less.”

Huatai Securities pointed out that affected by factors such as the “full” boost of export orders, export enterprises in coastal areas such as Guangdong and Zhejiang have been fully started since the third and fourth days of the first month, significantly earlier than the start date after the 15th day of the first month of previous years, and even some enterprises did not stop production during the Spring Festival. Many major infrastructure projects have not stopped work, and recent investment is expected to remain high.