Miss Wu, who declined to give her first name, works at a large toy factory in Dongguan, Guangdong province. Compared to the 8,000-plus workers who were let go and underpaid by bankrupt Smart Union Holding Ltd., or the 500 protesters against Kai Da Factory, Wu knows that her situation is not too bad.

Originally from Hubei province, Wu has been working for the 3,000-person toy factory for years. Starting in October -- when most Christmas items were finished and shipped -- she noticed the factory started to reduce production. "My fellow workers and I haven't had anything to do at work for months," she said.

The factory owner finally decided that he couldn't afford idle workers and offered Wu a "paid vacation." That sounds like a luxury for a factory girl like Wu. She is used to working overtime, on the weekend, and during holidays.

But there is one problem: The pay during her leave is less than the minimum wage in Dongguan.

Still, Wu is lucky. Less experienced workers have been "talked into" quitting. As the factory is running on low capacity, workers don't get to work overtime -- an important part of their income. Their base salary is very modest, compared to living expenses in Dongguan. So many migrant workers choose to go back home and lay low for a while.

"I'm not included in the government's unemployment stats," Wu said.

Also missing from the government stats are workers laid off from small workshops that are not registered. In Guangdong province, there are many such workshops, where owners can give workers the pink slip anytime and workers just quietly leave.

But, to business owners' advantage, the once-threatening shortage of skilled workers in Guangdong has been solved. Wage increases are slowing down or disappearing.

As a matter of fact, the government announced in mid-November it decided to postpone enforcement of the minimum wage increase prompted by China's updated labor contract law.

Who'd have foreseen this a year ago?

[This blog post is based on information from the New Express Daily and the China Business Journal]