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Chinese Labor, Cheap No More
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Blackhawk Offline
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Chinese Labor, Cheap No More
Everyone knew this would happen. It's the same economic cycle all post-industrial nations follow. Eventually you hit the Lewis Turning Point.
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The cheap labor that has made China’s factories nearly unbeatable is not so cheap anymore.

China has experienced sporadic labor shortages, which in turn have driven up its once rock-bottom labor costs. This trend is particularly evident in the weeks following China’s Spring Festival, or New Year, when more than 100 million rural migrants return to the countryside to spend the year’s biggest holiday with family. Coaxing those same migrants back into the urban work force has proven increasingly difficult.

This year has been no exception. Although nearly two weeks have passed since the Lantern Festival that officially marks the end of the 15-day holiday, cities across China are still facing a serious labor shortfall. In order to lure new workers and retain the old, some companies give employees sizable bonuses just for coming back to work, while others offer cash for every new employee they bring along with them. And in many areas, wage increases ranging from 10 to 30 percent have become the norm.

Despite all this, cities like Beijing, Shenzhen and Guangzhou are still short hundreds of thousands of migrant workers. Shandong Province is missing a full third of its migrant work force, and Hubei Province reports a loss of more than 600,000 workers. Last week, the Chinese government released a report describing this year’s post-Spring Festival labor shortage as not only more pronounced than in years past, but also longer-lasting and wider in scope.

http://www.nytimes.com/2012/02/18/opinio...-more.html

"Alpha children wear grey. They work much harder than we do, because they're so frightfully clever. I'm awfully glad I'm a Beta, because I don't work so hard. And then we are much better than the Gammas and Deltas. Gammas are stupid. They all wear green, and Delta children wear khaki. Oh no, I don't want to play with Delta children. And Epsilons are still worse. They're too stupid to be able to read or write. Besides they wear black, which is such a beastly color. I'm so glad I'm a Beta."
--Aldous Huxley, Brave New World
(This post was last modified: 02-28-2012 02:19 PM by Blackhawk.)
02-28-2012 02:16 PM
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RE: Chinese Labor, Cheap No More
Don't worry... the Chinese are just using Africans for cheap labor. I'm sure the Chinese will figure out a way to "outsource" their high labor costs even more.

Contributor at Return of Kings. You can follow me on Gab.
02-28-2012 02:22 PM
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kosko Offline
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RE: Chinese Labor, Cheap No More
What a rag of the paper the NYT is. I am sorry tho but this article is bullshit. They link an annual festival to labour shortages? How about the fact the avg Chinese factory worker still only makes like 9K a year, or the fact that China still has 50-65% more manufacturing activity than the USA. If the NYT is trying to plant the notion that China jobs may come back their fools. Even if the manufacturing base becomes more costly things such as technology and research at the end of the day is still dirt cheap.

And the last and biggest point... If labour prices in China do rise.... Whom does the NYT think will pay? American Consumers of course. If a iphone costs more to make.. You will pay more for it.

NYT = Litter box liner.
02-28-2012 02:59 PM
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