Article

2006-04-30 China-Japan-Koreas

China's factories hit an unlikely shortage: labor

Archived material is restricted to Rantburg regulars and members. If you need access email fred.pruitt=at=gmail.com with your nick to be added to the members list. There is no charge to join Rantburg as a member.

Posted by Anonymoose 2006-04-30 20:37|| || Front Page|| [5 views since 2007-05-07] Top

#1 Article: No matter how much you pay [in factories where wages average $100 per month], the service industry pays more.

I'm afraid this has to do with journalists getting a little carried away. $100 a month is lower than just about every other country in East Asia. The Philippines and Indonesia are about the same, but doing business there is really, really tough. *Dongguan* is becoming less competitive, not China as a whole, from a labor cost standpoint.

Posted by Zhang Fei 2006-04-30 21:43|| http://timurileng.blogspot.com]">[http://timurileng.blogspot.com] 2006-04-30 21:43|| Front Page Top

#2 Hmmm, companies may relocate to third world countries because Chinas labor costs are increasing? If that trend continues the greedy, capitalistic, global companies will run out of poor workers to exploit. Ha, the bloodsuckers will eliminate world poverty.

This story seems too good to be true. As a long-term trend I expect increasing automation to decrease the value of unskilled labor. Perhaps a large middle class will grow in China and India before that occurs.

Posted by Slaviling Glomong9311 2006-04-30 23:17|| 2006-04-30 23:17|| Front Page Top

#3 SG9311: As a long-term trend I expect increasing automation to decrease the value of unskilled labor.

It's not unskilled labor they're hiring in China - the workers generally have high school diplomas or a few years of college. (The problem in China now is that factory managers aren't able to hire the cream of the crop like they used to, so they're not happy. College grads would rather be bank tellers than do assembly work in a factory). China isn't Mexico - Chinese workers are paid less but better educated. This is why NAFTA hasn't been a panacea for Mexico - because (1) in East Asian countries where the pay is higher than Mexico, the skills are way better and (2) in East Asian countries where the pay is lower than Mexico, the skills are also superior.

Posted by Zhang Fei 2006-04-30 23:47|| http://timurileng.blogspot.com]">[http://timurileng.blogspot.com] 2006-04-30 23:47|| Front Page Top

23:57 C-Low
23:47 Zhang Fei
23:45 Frank G
23:43 Anonymoose
23:30 2b
23:23 2b
23:17 Slaviling Glomong9311
23:07 Frank G
23:06 Frank G
23:04 Frank G
22:49 Seafarious
22:47 zazz
22:34 J. Forbes Kerry, millionaire (and Viet Nam veteran)
22:26 Omomoque Jomoter1383
22:24 Omomoque Jomoter1383
22:23 Chomotle Slomonter9595
22:19 Phil Mick
22:17 Frank G
22:16 Omomoque Jomoter1383
22:15 WTF!
22:13 Fordesque
22:10 Jomons Unamble3338
22:06 Fordesque
21:59 Omomoque Jomoter1383