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Job losses in T&G sector multiplying with passage of time
Apr '09
At present, China's textile industry is providing direct and indirect employment to more than 20 million people, of which, migrant workers constitute 80 percent of the workforce. The sector also consumes about nine million tons of raw cotton grown within China every year, involving livelihood of 100 million farmers.

The textile industry is highly dependent on its survival on overseas markets, since a large portion of the production is earmarked for exports and the slowdown in the global markets is taking a heavy toil of the industry in the country, leading to part-closures or full-closures which in turn lead to unemployment.

In January to February this year, industrial output of the big scale enterprises in the textile industry fell 0.27 percent year-on-year; growth rate fell 16.28 percent year-on-year; profits reduced 8.1 percent year-on-year and 25 percent of the enterprises are suffering losses of different magnitudes.

In the current year exports from the textile and garment industry completed US $22.451 billion, down 14.78 percent year-on-year. The employment situation is more severe, Big-scale enterprises have removed 690,000 people since the end of last May. The medium size companies are facing a more severe situation.

Fibre2fashion News Desk - China

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