Artificial Intelligence
"Recruitment difficult" has become the number one problem in Shandong garment industry development
The Shandong garment industry is currently facing its most pressing challenge: a severe labor shortage that is significantly hindering growth. In the second half of this year, fluctuating cotton prices and rising raw material costs have added to the pressure on the sector. However, what many may not realize is that recruitment difficulties have become the top issue constraining development in 2010, even in Shandong, which is generally considered more favorable than southern provinces.
While Shandong’s garment industry has shown strong production growth—producing 2.863 billion pieces of clothing in the first ten months of the year, a 21.02% increase compared to the same period last year—the industry still struggles with high employee turnover, typically ranging between 10% and 20%. This instability leads to lower operational efficiency and makes it difficult for companies to maintain consistent output.
At the “12th Five-Year†Industrial Upgrading and Development Summit Forum held in Jinan on December 23, Liu Jianguo, Vice Chairman of the Provincial Garment Industry Association, highlighted the positive trends in production and sales. The province's garment enterprises are expected to reach an annual output of 3.4 billion pieces, with sales revenue projected to exceed 160 billion yuan. Despite these achievements, the underlying issue of labor shortages remains a major obstacle.
According to data from the association, the overall operating rate in coastal areas fell to 70% due to a lack of workers, with many large companies reducing their capacity to 80% because of labor shortages and increasing wages. Outsourcing has also become more common, with many small and medium-sized enterprises (SMEs) struggling to maintain a 50% startup rate.
Even though Shandong has a better recruitment situation than other coastal provinces, the high turnover rate continues to be a problem. Du Xinsheng, a member of the Party Committee at Hao Sheng Company, pointed out that while there is a shortage of skilled workers, many college graduates remain unemployed. To address this gap, the company has partnered with Zibo Silk Textile Vocational School, establishing it as a training base. Next year, 23 students will join the company for hands-on experience, helping to bridge the talent gap in the industry.
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