labor - The Chinese talent crunch

Consulting firm McKinsey follows up on the debate whether China's labor market is bracing for a shortage or not. McKinsey argues that despite the 3.1 million graduates that will leave Chinese universities this year, those shortages are likely to occur.
Quality of the education is an important issue, the articles says, but McKinsey comes with two additional arguments explaining why the number of 3.1 million is a bit less impressive than it would be in the US or even India, where those numbers are much lower.
Mobility of graduates is lower than in any other country they studied and most are not living near an international airport. About 50 percent of all graduates is simply geographically out of touch for most international companies. Then, because of the fast growing domestic industry, many of the new graduates are taken up by local companies.
A shortage there will be. It is still unclear what effect this will have on wages of qualified workers, but it seems logical to expect faster raises than in the recent years.