While factories in China’s manufacturing hub in the Pearl River Delta continue to suffer labor shortage, especially after the Chinese New Year, most companies are not willing to raise wages to attract workers.
A recent survey by the local labor department in Shenzhen’s Longgang district reveals that only 15 percent of the 103 surveyed firms plan to give very modest raises. Most of the surveyed companies are plastics and electronic manufacturers, according to a report from Nanfang Daily.
These companies believe that the main reason for the latest labor shortage is limited supply of migrant workers. About 70 percent of these companies said their current headcount is lower than a year ago.
Based on published data, the average monthly wage in Shenzhen was 1,600 yuan (US$234) in 2007 and 1,800 yuan (US$264) in both 2008 and 2009 — overtime pay included. In other words, wages increased 12.5 percent in 2008 but became stagnant in 2009.