Many migrant workers are in the same boat. The Xingyang Shoemaking Factory owns 10 sub-production units and employs about 8,000 workers. "Many, like us, were fretting about their future as the factory could not run at full capacity," said Guo.

Even with the prevailing gloom, many factories along the expressways in Dongguan are unwilling to downsize staff, as they do not want to incur compensation costs.

But with low pay and less work, many workers are now asking for permission to leave on their own. And that is beneficial to their employers as they do not have to pay any compensation.

Guo and Yin have also made such a decision. "We could not put up with being idle," said Guo while packing and heading for home last Sunday.

Dongguan's East Train Station, however, does wear a busy look with packed trains transporting thousands of migrants back to Sichuan, Anhui, Henan and other provinces daily.

"In most cases, the vexed factory owners would let the employees go," said Guo. Some owners, who believe that their business will return to normal next year, will try to persuade the experienced workers and managers to continue to stay with them.

In October, 714 companies were closed in Dongguan, according to the local government. Local officials said more companies would be closed in the coming months, with the figure likely to cross 1,000 after Christmas.

Job-seekers look for suitable vacancies at a job fair in Dongguan.[China Daily]

Like the middle-aged couple, Li Ji and Li Dan, both in their twenties, have also chosen to quit their job of making press buttons for mobile phones. "We had no chance to work for extra pay and what we earn now is far too less for us to survive," said the young couple.

As they are novices, their basic pay is less than US$100 per month. "The boss didn't fire us but we chose to go," said Li.

"During the previous two months, our salary, without any overtime income, could only just keep the wolves at bay. We did not find any joy while working," said Li. "We only want to return home and stay with our parents for a while."

Guangdong, one of the key manufacturing hubs in China, has been struggling to cope with slumping exports as many units have closed down. And there are fewer enterprises that have shown interest in fresh hiring.

In downtown Dongguan, the four-storied job fair building which used to swarm with job-seekers now wears a deserted look. The popular weekend job fairs have also stopped.

Now, the stalls on the ground floor are rented by some enterprises. "The number of job-seekers and enterprises has been declining by a big margin," said Yang Jun, a job fair employee.

Yang said the job market would remain closed for most of January due to the Spring Festival holidays, the most important holiday in China which falls in late January. "Earlier the job fairs used to close only for half a month. The expanded holiday can tell you how stagnant employment prospects are," said Yang.

While floods of migrants return home, workers from other regions are also joining the exodus. Zhang Jun is one such person. After wandering before bulletin boards for several days, Zhang also chose to return to Fujian province where he worked as construction worker for many years. "The average pay in this city is too low," Zhang complained.

In Guangdong, the average pay of a common worker never surpasses 1,500 yuan per month. But in Fujian, Zhang said: "My earnings can be doubled."

"The closure of the factories has not only made those workers lose jobs, but left us also in despair," said Li, who runs a grocery shop.

The toy factory has laid off 7,000 workers after it declared bankruptcy in October. The local government spent over 24 million yuan to compensate the employees, who were left helpless when the company owner fled.

Near its entrance, there are 10 small shops, of which five are closed.

"Nobody visits our shop now and it's hard," said Li. "But I am looking for the factory to be auctioned and reopened soon."

(China Daily December 17, 2008)