This year after Spring Festival (the Chinese new year), news reported by media indicate that shortage of labor is still troubling companies in China, particularly in the south-east coastal area. Many big cities such as Beijing, Shanghai, Guangzhou, Shenzhen, Dongguan, Jinan, etc. are facing challenges.
Below are some reports by media. (Chinese only).
All media admits that labor shortage is a country wide challenge except Guangzhou Daily who just published a report "Guangdong does not have labor shortage" recently. It quoted the words by Guangdong government officials, saying that labor shortage does not exist in Guangdong province. However, it adds, "if a company can (1)offer a salary above average level, (2)offer a better working condition, and (3)respect migrant workers and provide training opportunity", then it is easy to recruit new employees".
Well, the government is telling the truth, but it does not mean that labor shortage is a lie. In fact, the government's words indicate that companies need some efforts to prevent labor shortage.
This month when I was in Guangzhou, I visited two consulting companies working on labor issues. Both agreed that labor shortage was everywhere in that region. The reasons are: (1) working condition is poor and salary is low;(2)workers do not have a feeling of being respected;(3)workers are better educated and have more freedom in selecting factories;(4)after agricultural taxation reform, migrant workers can make more money on farming in their hometown that before.
How to solve the problem? Companies are trying many different ways. For instance, some factories establish "New Year Bonus" given to every workers; some establish "Early Bird Award" to encourage workers return to work earlier; some establish "Agent Bonus" to encourage old workers to introduce new ones to the factory.
However, in a long run, financial incentives like award and bonus are not enough. We need to improve working condition and let workers work in a respected situation. We also need to reform the industrial structure to reduce the dependence on cheap labor. Government, as a public organization, can also contribute by introducing preferential policies to facilitate migrant workers' living in the city.