China faces challenge as rural workers stay home as employment in rural areas decline

China is facing concerns that many rural workers may stay in their hometowns this lunar new year due to fewer city jobs, The Economist reported.

Authorities are worried that declining opportunities in construction and factories could reduce the number of migrants returning to cities after the holiday. In November, China's rural affairs ministry warned against a large-scale problem of migrant workers remaining in their villages. 

According to the report, such direct statements from officials are unusual and reflect growing concern over the country's economic slowdown.

Signs of the shift are already visible. At a railway station in eastern China, 60-year-old Zhao, a tile layer who worked in Nanjing, was heading home to Henan province a month before the holiday. 

The report said he explained that construction work had dried up and his monthly income had fallen from 9,000 yuan to 5,000 yuan. Despite the drop, he expects to return to Nanjing after the holiday.

Historically, rural areas acted as a safety net during economic downturns. During the 2008 global financial crisis, many migrants returned home and relied on small plots of land until the economy recovered. 

According to the report, the current slowdown appears more prolonged. Weak demand in the property sector has reduced construction jobs, while nearly 40% of rural households now lease out their land instead of farming it themselves, limiting fallback options.

In Zhoukou, a midsized city near Zhao's village, the local government has set up a job office in a shopping mall. 

The report added that staff there have seen a rise in returning migrants over the past month as coastal factories closed early. Most available positions are temporary, including delivery and local service roles.

Some regions are faring better. The central government has encouraged towns to attract industries and persuade skilled migrants to return. In Hubei province, towns such as Tianmen now host new factories and dormitories, allowing residents to work closer to home. It said, however, that local economies can absorb only a limited number of workers.

Huang, a man in his 40s, returned to Tianmen from southern China to be with his son for the college entrance exams, while his wife remained in Guangzhou. He said jobs were available locally, but pay was lower than in larger cities and lower than in previous years.

The report said younger workers are also shifting priorities. Many now prefer to stay closer to family rather than move far for higher wages. The report said that a decade ago, nearly half of rural migrants crossed provincial borders for work, but today only 38 percent do, showing a growing preference to settle near home.

For Chinese authorities, this shift presents a challenge. The report added that fewer workers are willing to move to distant cities, potentially affecting industries that rely on migrant labour.