labor - Qualified graduates are scarce - McKinsey

Over three million graduates leave China's universities this year, but according to a recent report by McKinsey, they are lacking most of the skills needed to move up the country in the industrial food chain, write The Financial Times and the India Daily.

A lack of practical skills and poor English-speaking levels will make it hard for China to develop service-based industries such as the sort of information technology outsourcing that India has specialised in over the past decade, it says... It is a paradox of shortage among plenty, said Andrew Grant, director in McKinsey's Shanghai office and one of the report's authors. Few of China's vast numbers of graduates are capable of working successfully in the services-export sector.