A Labour Shortage? In China?

Related entries: Business Issues, Economy, General, News

Excuse the (stretched) Monty Python paraphrase, overcome your shock that there could be a shortage of people in a country of 1.3 billion, and remember that things are rarely simple in China.

While there is no shortage of people in China overall, there is a growing shortage (?) in some areas, such as the manufacturing hubs of the Pearl River Delta in south China. How could this be?

There are a number of reasons, including the mobility and preferences of the mobile (migrant) workers. The southern factories are suffering from rising costs and compliance, as well as a fall-off in exports last year and, for those reasons, many have closed. But there is also competition from inland cities that are seeing a construction and manufacturing boom. And those cities are closer to home for many migrants. Why drive all the way to Dongguan, when you can be near home in Hunan?

• Employment: Countryside competition RT @fonstuinstra: China: Labor shortages driving up wages – China.org.cn http://ow.ly/1bSDp 10:08 AM Feb 27th

• More on less labour RT @China_Daily: Zhejiang facing worst labor shortage in 7 yrs http://tinyurl.com/ykxlctq 10:11 AM Feb 27th

• Back to work? RT @MalcolmMoore: RT @mdh47: Southern China seeing labor shortage of 2 million, says paper http://j.mp/aVJ9Hv 8:02 AM Feb 22nd

• RT @PerrineB: Mystery of China’s Labor Shortage – China Real Time Report – WSJ http://bit.ly/bCSTpP Another dilemma of China’s development 6:20 AM Feb 26th

•RT @GE_Anderson: reason 10K guangdong factories closed? Not the fin crisis, but RMB appreciation and new employment law. @shaunrein 6:28 PM Feb 26th

Anecdotal evidence suggests that higher wages, bonuses for introducing new workers, more benefits and better conditions are all on offer.

2 Responses to “A Labour Shortage? In China?”

  1. Archive » Briefly…Top Ten Tweets (From ODI, CSR & M&A, To GDP, RMB & NDA)| China Business Blog Says:

    […] Employment: Countryside competition RT @fonstuinstra: China: Labor shortages driving up wages – China.org.cn http://ow.ly/1bSDp 10:08 AM Feb 27th (See our post here) […]

  2. Archive » Briefly…Top Ten Tweets (From Growth, Energy Intensity & Dialogues, To Luxury, Strikes & Suicides)| China Business Blog Says:

    […] for factory workers (of 20-30%) at Foxconn, KFC and other businesses (which also have to address labour shortages). And it is not just the workers – graduates, who have been suffering from lack of […]

Leave a Reply

You must be logged in to post a comment.