The garment industry is currently facing a significant challenge known as the "labor shortage," which has become a major obstacle for many companies. Industry experts identify three main causes behind this issue. First, some companies offer poor working conditions, making it difficult to attract and retain workers. Second, the nature of the work in clothing factories is often repetitive, with strict labor discipline, leading to low job satisfaction. Third, a growing number of younger workers lack a clear career vision and tend to be impatient, resulting in high turnover rates.
Since last year, the apparel sector in Jinan has gone through a turbulent period, marked by fluctuating demand and now facing its most pressing problem: a severe labor shortage. According to recent surveys, factors like rising wages and a shrinking workforce have led to widespread underemployment in the industry. As a result, more companies are turning to outsourcing to meet production needs. Industry insiders report that employee turnover rates range from 20% to as high as 50% in some firms, causing serious operational challenges.
Liu Sheng, chairman of Jiu Ling Clothing Company, shared his experience with the reporter. He mentioned that despite having export orders to the Netherlands in 2010, the company struggled with delays due to labor shortages. A contract signed in September was only fulfilled in November, leading to financial losses and contractual penalties. This situation is not unique to Jiu Ling—reporters found that most clothing companies in an industrial park on Huaxin Road are also dealing with similar issues.
According to the Provincial Clothing Industry Association, the national apparel industry faced a significant labor shortage in 2010, with overall operating rates in coastal regions dropping to around 70%. While Shandong performs better than other provinces, the average worker turnover rate still stands at about 20%, with some companies experiencing over 50%.
In addition to the above factors, many young workers prefer service jobs over manufacturing roles, further exacerbating the problem. The industry continues to struggle with attracting and keeping skilled labor, which is essential for maintaining productivity and competitiveness in a rapidly changing market.
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