Friday, August 06, 2004

labor - Shortages hit the markets

It still seems a bit of an unlikely story, but from two sources I now note a shortage on the labor market in China. Yesterday at CCTV the Ministry of Personnel said six industries, among them the IT, suffered from a shortage. Today also the Asian Labour News reports a shortage or migrant workers in a summery from Chinese media.
Employers have been telling me that over the past six months they noted a sharp reduction in salary demands from their recruits, compared to overrated demands before that time.
Especially the shortage of migrant workers is strange, as also ALN notes. "Major deterrences included the issues of unpaid wages and increased cost of living in the cities, which unnerved many migrant workers already denied basic social and employment benefits.
Rising grain prices and rural incomes had also made it more appealing for them to stay on the farms," ALN quotes on of its sources. "Salary offers in some cities would have to be adjusted upwards to match areas such as the Yangtze River Delta, where the average monthly pay for migrant workers was about 8.5 per cent higher than the national average, the magazine reported."
That sounds like the beginning of some overheating.

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