Greater south China is one of the most economically dynamic regions in the world and one that is of particularly great significance for the manufacturing industry, both domestically and internationally. As the first area of China to be opened up to overseas business, the Pearl River Delta (PRD) is one of the country’s most advanced and competitive regions, with world class local- and foreign-owned original equipment manufacturer (OEM) operations. Consistent with the strategic direction articulated by the central Government over the past years, these manufacturers are striving towards technological innovation to move up the value chain and to enhance their competitiveness in a wider range of products. Given a total population of around 51.5 million across the Pearl River Delta (21.5 million officially registered inhabitants and an estimated 30 million migrant workers), the region certainly has the workforce to continue to drive the economy forward.
Labor market:
In today’s Chinese labor market, not only is it a fact that labor is no longer cheap but there is also a quickly shrinking number of willing and able workers. As the working class becomes wealthier and wealthier, their outlook on the future is no longer simply being able to find a job. They want jobs with higher pay and better benefits, and if possible, white-collar occupations instead of blue-collar factory work. From a recent survey, the need for employees and workers are primarily from secondary and tertiary industries. In Guangdong province, the labor demand for secondary industries is about 55.34% and most of this is concentrated in manufacturing.
Primary Industries: 1.92 %
Secondary Industries: 55.34 %
Tertiary Industries: 42.74 %
Labor demand for different industries in Guangdong Province (2008):
|
Industry |
Proportion |
|
Agriculture, Forestry, Animal husbandry and Fishing |
1.92% |
|
Mining |
0.14% |
|
Manufacturing |
51.28% |
|
Production and distribution of electricity, gas and water |
2.13% |
|
Construction |
1.79% |
|
Transport, Storage and Post |
3.45% |
|
Information transmission, computer services and software |
4.81% |
|
Wholesale and retail sales |
10.70% |
|
Accommodation and Restaurants |
9.63% |
|
Finance and Insurance |
1.08% |
|
Real estate |
2.63% |
|
Renting and lending, commercial service |
1.54% |
|
Science research, technical service and
geological exploration |
0.32% |
|
Water conservation, environmental resource, management of public infrastructure |
0.21% |
|
Resident services and other services |
4.94% |
|
Education |
1.48% |
|
Health, Social security and Welfare |
0.51% |
|
Culture, Sports and Recreation |
1.26% |
|
Collective management and social organizations |
0.16% |
|
International organizations |
0.02% |
Within the labor market, the majority of applicants are male:
Male: 57.94 %
Female: 42.06 %
The demand for labor is concentrated in the 16-34 age group:
16-24: 46.77 %
25-34: 33.11 %
35-44: 10.37 %
above 45: 2.58 %
Recently, there have been newspaper reports about Chinese cities and towns experiencing a shortage of labor. At the beginning of 2009, many factories’ labor demands were reduced as a result of the 2008 global financial crisis. An estimated 600,000 migrant workers left Guangdong Province due to unemployment in 2008. But the ensuing shortage made headline news when the busy production season set in around June - when massive amounts of overtime work normally begin.
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