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China’s Manufacturing, Service Industries Experience Labor Shortages

December 1st, 2010 davidguide

Lawrence Mijares – AHN News Contributor

Shanghai, China (AHN) – Some Chinese factories and other service establishments are experiencing a serious shortage of labor due to the high cost of living and an unchanged salary base.

Manufacturing hubs in the Yangtze and Pearl River deltas that surround the city of Shanghai and Guangzhou province are experiencing an acute shortage of migrant workers in their respective home and customer service sectors.

The labor shortage, which has already affected several companies’ expansion plans, occurred in the busiest season of the year–Christmas and New Year. Manufacturing firms were forced to decline orders because of the worker shortfall that is estimated to be more than 900,000 in Guagdong province.

On average, 40 percent of job vacancies in the Yangtze and Peal River Delta areas remain unfilled.

Stagnant salaries and the steadily increasing high cost of living have been blamed for the crisis. This has caused workers to remain in their hometowns where, although they earn little, they do not have to spend as much on living costs.

Article © AHN – All Rights Reserved

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Posted in Returning To School Tags: AHN, China, China's, chinese factories, Cost, delta areas, Experience, Guangzhou, Industries, Labor, manufacturing, Peal River, Pearl River, river deltas, service, service establishments, service sectors, Shanghai, shanghai china, shortage, Shortages, Yangtze

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