Monday, May 21, 2012

Investment News and Commentary from Emerging Markets in Asia - China, India and ASEAN





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2point6billion.com discusses investment news and events from the emerging markets of Asia - including India, China and the ASEAN countries. It is produced by the Asian foreign direct business advisors at Dezan Shira & Associates from their offices across emerging Asia.




China’s Labor Shortage to Continue

Feb. 26 – Despite having one of the largest populations in the world, China’s shortage of migrant workers is expected to continue in selected areas in the country says a government survey.

The survey took stock of the migrant worker situation in China through interviews with 3,239 companies and 9,081 migrant workers working in 26 large-and medium-sized cities in 13 provinces.

According to the results released by the Ministry of Human Resources and Social Security, labor demand after Chinese New Year rose by 15 percent compared with the same period last year and the average number of job vacancies is forecast to reach 143 per company.

Majority of the companies surveyed anticipate a labor shortage after the Spring Festival holiday. Eight percent of migrant workers replied that they would not go out to look for work while 62 percent said they would go back to work after the holiday.

The four commons offered for not returning to their former job after the holidays was mainly due to low salary, overtime, no potential for development and inability to learn techniques.

Previously only China’s wealthier coastal areas reported labor shortages but now even inland areas are complaining of not hiring enough. “We planned to recruit 300 people and we prepared cars for the applicants to visit our company and factories, but there are far fewer than we expected,” an employee of household appliance manufacturer Midea told Xinhua during a job fair in Anhui.

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One Response to China’s Labor Shortage to Continue

  1. Chris Devonshire-Ellis says:

    What part of this is a price of China’s strengthening their labor laws? People not wanting to hire as well as workers wanting more? I wonder what the unemployment rate is. I would imagine that tells the other half of this story.

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