The LED lighting market value soared 47.8% YoY to $35.3 billion in 2014 compared to 2013. LED lighting market penetration also increased 32.7% in 2014, while global LED lighting demands increased 60%. While these statistics have greatly boosted the LED industry’s confidence, and 2014 kicked off with a promising market rebound, LED industry was heading for a decrease in 2014.
To survive the LED industry crisis, lighting manufacturers laid off employees to reduce costs one by one. Lighting manufacturers massive layoffs reflected the impact from China’s easing economy and plunging real estate market. Huge fluctuations in China’s lighting labor market can be observed, as most manufacturers hire during peak seasons to meet order demands, and halve the work force with the approach of the slack season to reduce additional costs.
According to statistics, 93.75% of Chinese lighting manufacturers have minor labor shortages. Up to 60% of lighting manufacturers reported 5% labor shortages, while 26.67% noted the shortage ranged in 10%~15%. Only 13.33% manufacturers reported labor shortages above 15%, and most of these positions were for average workers.