China's labour shortages

How much of a problem are labour shortages in China? A previous post suggested the phenomenon is real enough. A recent research paper by Mizuho Research Institute senior economist Hiroshi Inagaki proviudes more data and analysis. In South China's labor shortage - will the current worker shortage escalate? (PDF), Inagaki finds that:

The shortage of labor is attributed very often to the low level of wages and poor working conditions among certain factories in South China. However, a more fundamental and plausible cause is the creation of more attractive job opportunities in other work places as a result of tight labor market conditions...

The shortage of workers is largely among young female workers, with the increase in job offers among export-oriented manufacturers - such as apparel - leading to shortages in labour supply.

Comments

[China Law Blog]

China does not have a labor shortage. Some of the regions most popular with foreign companies have a shortage, but even there, if companies raised their wage rates, the shortages would disappear.

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