Labor Shortage In China: Industrial Sector

Companies that offshore or outsource typically look toward China or Mexico to minimize costs; China has a population of over a billion people and no set minimum wage for the entire country. Years ago when factories opened in China, people from the surrounding regions would line up to find work, something which no longer happens. The service sector in China has become more attractive to workers since the quality of life in such jobs is much better. The service sector created 37 million new jobs in the past five years as opposed to the industrial sector, with just 29 million.

The labor shortage for the industrial sector in China is not a cyclic matter; the hours may be longer and the wages lower in service jobs but the jobs are more appealing. Success is very important in Chinese culture and telling “your parents that you’re working at reception, [just] sounds nicer.”

Evan Chang

Source: The Wall Street Journal

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