no third solution

Blogging about liberty, anarchy, economics and politics

On China, and competition for Labor

April 3rd, 2006

Nope. On the global scale, even China must succumb to the laws of competition. Recently, the New York Times has suggested that there is a possible Labor Shortage in China. And although some argue that the labor shortage is probably only a regional problem, in a nation of 1 billion people, a regional problem is a pretty significant problem nonetheless.

“We’re seeing an end to the golden period of extremely low-cost labor in China,” said Hong Liang, a Goldman Sachs economist who has studied labor costs here. “There are plenty of workers, but the supply of uneducated workers is shrinking.”

…And proof that people around the world don’t like to stay at the bottom of the economic barrel any longer than is absolutely necessary; they’d rather go to college, avoid the factory floors and backbreaking labor. Afterall, don’t most people?

“When the economic reform started, migrant workers were very hard-working, and usually stayed for a long time at factory jobs, but the new generation has changed,” said Chen Guanghan, a professor at Zhongshan University in Hong Kong. “They are reluctant to take factory jobs that are harsh and pay very little.”

So… with apologies to free-immigration advocates everywhere, “There are jobs in China that the Chinese will no longer do.”

no third solution

Blogging about liberty, anarchy, economics and politics