Lack of cheap labor hits China factories

Human Resources

29 May 2006

Officials claim there are some 150 million excess workers hoping for jobs in cities but there are growing signs that the country's huge labor pool may be shrinking, state media reported. Factories in Guangdong, the manufacturing capital of China, say there is an annual shortage of about two million low-wage workers. Inland cities are also facing the crunch. The central province of Henan, which has made an effort to develop textile industries, has only seen 70% of the expected workforce. Some construction and manufacturing companies in coastal areas have been forced to pay laborers almost the same as what a new university graduate would earn. According to a survey by the Ministry of Labor and Social Security, these firms are willing to pay up to US$124 per month, almost 70% more than three years ago.

Bookmark and Share: