— Chris Cool blog

Semi Skilled Workers in China

While researching this topic of semi skilled workers in China, i came across this very interesting article. http://www.businessweek.com/magazine/content/06_13/b3977049.htm. “A labor shortage has pay soaring. That is sure to send ripples around the globe.” I was clearly going to blog about this as it dealt well with my topic, and had a nice global impact. Firstly what I found intriguing was the fact that China was suffering from a labor shortage. It seemed to everyone that China was unlimited supply of labor, but that is quite the contrary. It was first discovered in 2004 that labor supply was diminishing, but many saw this as temporary. Well this “temporary” situation turned dire fast, especially for the semi skilled industries of China. Some of the low tech industries are facing as much as a 50% turnover. These factors eventually will force the Chinese to upgrade their entire industrial base to make higher-margin goods. This is bad news for the semi and unskilled workers of China. Also, Emerson General Manager David Warth says, “[its hard] to keep his 800 employees from jumping ship to Samsung, Nokia and other multinationals that are now operating in the tech manufacturing
hub. ” Sure this has poor implications for the Chineese industrial workers, but where are those great global impacts? Why should we care? Well, as Citigroup noted in a February report: “The continuous growth of labor costs in China, even at a moderate pace…is likely to have implications for inflation
worldwide.” This is to say that China is facing a huge problem, and that is the neccessary increase of wages just to get enough workers to survive. One way considered of making up for this loss is too pass price increases on the consumers in U.S and other markets. This will definitely have an impact on us as we could see prices on goods imported from China(which is a ALOT of stuff)soar.