Labor Shortage in China May Lead to Trade Shift

[RedEarth]

SHENZHEN, China — Persistent labor shortages at hundreds of Chinese factories have led experts to conclude that the economy is undergoing a profound change that will ripple through the global market for manufactured goods.

The shortage of workers is pushing up wages and swelling the ranks of the country's middle class, and it could make Chinese-made products less of a bargain worldwide. International manufacturers are already talking about moving factories to lower-cost countries like Vietnam.

At the Well Brain factory here in one of China's special economic zones, the changes are clear. Over the last year, Well Brain, a midsize producer of small electric appliances like hair rollers, coffee makers and hot plates, has raised salaries, improved benefits and even dispatched a team of recruiters to find workers in the countryside.

That kind of behavior was unheard of as recently as three years ago, when millions of young people were still flooding into booming Shenzhen searching for any type of work.

A few years ago, "people would just show up at the door," said Liang Jian, the human resources manager at Well Brain. "Now we put up an ad looking for five people, and maybe one person shows up."

http://www.nytimes.com/2006/04/03/business/03labor.html?_r=1&oref=slogin

[jaxx]

1. Isn't that wild, with their huge population

not able to fill jobs? Maybe their armies are growing and that's taking away some of the labor market.

[mtnester]

9. Perhaps there are jobs the Chinese just won't do just like here in Amurika

:sarcasm:

[DavidDvorkin]

2. They're going to have to outsource to India!

And when that doesn't work, to the U.S.

[Betsy Ross]

3. Latest Breaking News.

A van full of Americans was stopped in Beijing. They are believed to be illegal aliens seeking work.

[justice1]

4. That's wonderful news!

With all of the outsourcing to China I've been wondering what their unemployment rate is.

The standard of living for everyone should continue to climb, as well as improved working conditions.

[expatriot]

5. think of the global environmental impact though...

as more Chinese and subcontinental Indians move into the "middle class" and begin consuming more and more at the pace we gluttonous Americans have set... wow. hope they are more green than we are.

[skids]

6. Nope.

China is an environmental disaster zone already.

[justice1]

7. Isn't is easier to be green, when you have a choice?

The countries with best environmental records, are the ones with a higher standard of living.

[wickerwoman]

8. The last time I checked,

unemployment in China was in the 3-4% range. Of course, those are the official statistics, but I have no trouble believing them. Most of those jobs are pretty pointless- they have three or four crossing guards at every intersection and swarms of young people who do nothing but throw cards at passersby.

[Javaman]

10. "won't somebody think of wal-mart????"

Awwww this story breaks my fucking heart. Poor old china-mart will have to raise their prices on their crappy merchandice...boo hoo.

[robcon]

11. This is great news...

...and another indication that "fairly free" trade works: it creates jobs and wealth. The wealth that has been created in China will spread to other countries.

Free trade is a Democratic issue: it creates jobs at home and spreads wealth to other countries.

[inchhigh]

12. China Trade

I just posted a realted story about China reducing it's dollar denominated debt. It includes this quote:

"China can stop buying dollar-denominated bonds, increase buying of U.S. products and gradually reduce its holdings of U.S. bonds," the newspaper quoted him as saying. "But all these must follow the prescribed order," he added, without elaborating.

If they increase buy US products does that decrease some Chinese production? Sound like a plan coming together to me.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2206749

[Mika]

13. Problem is: fewer & fewer products are being made in the US.

Fewer & fewer corporations are America based (offshoring to low tax zones).

[lovuian]

14. They day of Cheap Labor is over... the World Worker knows

he is worth more... and is demanding more...

pretty soon their will be no country to go for cheap labor...

its going to get interesting.......

[old_techie]

15. The shortage shouters know no limits

Gee dont they have a shortage of scientists and engineers too?:sarcasm: