It's interesting to contrast these two views of the Chinese labour market.
China's Wage Increases on Labor Shortage:
With huge developments taking place in the country's agricultural industry, fewer farmers are willing to give up their land and make a living in the city.
"A decrease in the number of laborers will surely lead to an increase in labor costs," said the central bank. "Many enterprises in the coastal cities have to pay employees more to maintain its human resources."
Graduates find the going tough in big cities:
A decent post in big cities with a large income is the dream that has bolstered their dignity and ambition.
With their dreams shattered, they become less self-confident. The only expectation left is the hope of getting a piece of work that can free them from years-long subsidies from parents, make them financially independent and pay off the huge loans from the bank.
[...]
Since 1999, when China launched a nationwide enrolment expansion campaign, higher education has taken a big leap forward, with the number of graduates increasing by about 600,000 to 700,000 year-on-year.
It is expected that this year, more than 4.12 million graduates will pour into the job market, a dramatic increase from last year's 3.07 million. In addition many of those 2005 graduates have not found jobs, either.
Of course the markets for university graduates and low-wage labourers are distinct, and there's no reason to expect them to move together. Now the question: will the job market adjust to accomodate more highly skilled workers, or will the workers adjust to more low-skilled jobs?
1 comment:
Another Question:
Do Chinese students leave college or choose not to attend?
I think a little of all. I think the most important thing will be the decrease in cost for Educated Chinese. This will mean it will be better to have someone build a machine to replace 10 workers than to hire the 10 workers.
As long as they are not building Subs or Bombers, this is a good thing ;-)
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