Labour shortages in China
Many companies see China as a vast pool of cheap labour ready to consume whatever is brought onto the market. But just like any other country, China faces problems in labour quality, which, in the end, drives up costs and balances the labour markets. Ony that for a country of over one billion people, it takes a bit longer to balance the scale.
The demand for labour is nevertheless astonishing. The New York Times writes that China "is experiencing shortages of about two million workers in Guangdong and Fujian, the two provinces at the heart of China's export-driven economy."
As mentioned before, this demand favours labour: "No one thinks China is running out of workers. But young migrant workers coveted by factories are gaining bargaining power and many are choosing to leave the low pay and often miserable conditions in Guangdong. In a nondemocratic China, it is the equivalent of "voting with their feet." The reaction of local authorities is swift. Shenzhen announced that it would raise its minimum to US$83 a month from US$74. Still not expensive, but a sign of change - a change, just like anywhere else.
(By Asia Business Consulting)
The demand for labour is nevertheless astonishing. The New York Times writes that China "is experiencing shortages of about two million workers in Guangdong and Fujian, the two provinces at the heart of China's export-driven economy."
As mentioned before, this demand favours labour: "No one thinks China is running out of workers. But young migrant workers coveted by factories are gaining bargaining power and many are choosing to leave the low pay and often miserable conditions in Guangdong. In a nondemocratic China, it is the equivalent of "voting with their feet." The reaction of local authorities is swift. Shenzhen announced that it would raise its minimum to US$83 a month from US$74. Still not expensive, but a sign of change - a change, just like anywhere else.
(By Asia Business Consulting)
posted by Andreas @ 8:23 pm
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