Chinese wages rise

Companies in China’s Pearl River Delta area are reported to be increasing wages to attract migrant workers amid fears of a growing shortage of labour.

Details published in the China Daily newspaper revealed that the average monthly salary offered to new members of staff increased by 13 per cent over last year, to 1,160 yuan ($162). Almost 70 per cent of the region’s companies are planning to take on new employees during 2012 – an increase of 20 per cent over the same period a year ago. However, finding new employees is proving difficult. A recent job fair in Guangzhou offered about 7,000 vacancies, but failed to attract more than 4,000 job seekers.

Research by the Asian Footwear Association claims that nearly 1,000 footwear manufacturers closed their factories or moved out of the Pearl River Delta region last year, with 25 per cent of these setting up in south east Asian countries, half in other mainland Chinese cities and about 25 per cent simply adopting a wait-and-see approach.

“The industrial repositioning of the Pearl River Delta region has forced some of the companies in the region – especially those with less competitive edge in the market – to close or move out,” said Ding Li, a researcher with Guangdong Academy of Social Sciences. “The flow of migrant labour has been a clear indication of that.”

Publishing Data

This article was originally published on page 3 of the April 2012 issue of SATRA Bulletin.

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