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Textile
Moving Inland March, 2010, Electronics the labor shortfall in the Electronics IndusAssembly trial Park in Suining, Sichuan reached 30%. In Jintang, anChinese workers are known to be other Sichuan county, 12000 new jobs are waiting to be quite attached to their hometowns, which Shoes/Hats filled.With the development of manufacturing inland, fachas played a factor in the shortage of labor in many regions. tories in coastal regions are slowly closing down and movGovernment and company policies have also provided new Rubber Products ing towards the cheaper labor pools. Workers who were incentives to stay closer to home. Mr. Xie, a manager from originally forced to travel and find work in the coastal reXingchao Textile Factory, claims that the labor shortages Manufacturing Labor gions, now have the opportunity to get equivalent or even stem from emerging manufacturing in Inland China. The government realized the -------------------------------------------------------------------------------------------importance of stimulating higher wages, closer to their hometowns. So why not stay? 0 10000 15000 30000in35000 45000 An increase salaries40000 will help retain workers, but in the domestic demand when economic 5000 recovery began after 20000 the 25000 Workers Needed Job Seekers end the consumer will be the ones who lose. Higher wages global financial crisis. Last year, the state council issued a will force companies to raise their prices to compensate bill to encourage industries to shift towards Central and for the increases. When you Western China to aid in the add the additional cost of hirdevelopment of the infrastrucing new workers, profits start ture, and make use of labor in Company Recruitment Stats in the Pearl River Delta to wither away. Analysts are the regions. In 2010, 26 statenow predicting that salaries owned enterprises, under direct Company Hiring NO Job Basic Salary in China will increase by 15supervision of SASAC, signed Mgmt+Gen. Labor 20% annually over the next 50,000 1,500 Foxconn (Shenzhen) 46 large-scale project contracts few years, which will force with total investment valued at BYD (Shenzhen) >10,000 (New Mgmt+Gen. Labor 2,000(New Grads manufacturers to shift their RMB109 billion (US$16.5 bilGrads 8,000) 3000 + bonus) assembly lines inland and furlion) in Sichuan. The “Move Luzhou Shoe Manufacturing 1,800 6,000 ther west, or to pack up and West� began to accelerate led (Dongguan) Operator leave China altogether. by the electronics industry, so Huabao Shoe General Labor 1,800 6,000 much so that labor resources (Dongguan) could not meet demands. In
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