Link
Well, I didn't think I would live to see it!
So I guess the bag of 10,000 balloons at WalMart will go up $.08!
edit: Will this mean the illegals from Mexico will now be working to get to China?
The unthinkable is happening in China: This country of 1.3 billion can no longer find enough people willing to work long hours for low wages churning out cheap consumer goods for the export market.
Last year, the Chinese Labor Ministry put the factory shortfall at 2.8 million workers nationwide. Here in southern China's Guangdong Province, factories are short 1 million to 2 million workers this year, and 73% say they're having trouble filling job openings, the provincial government says.
"Factories must learn a lesson," says Cheng Jiansan, an economist at the Guangdong Academy of Social Sciences. "There is no longer a limitless supply of workers."
The labor shortage, along with rising materials and shipping costs, has big implications for China's surging export machine and its customers in the United States and other rich countries. Factories in Guangdong and other booming east coast provinces must find cheap labor elsewhere, make do with a reduced workforce or raise wages and benefits - and hope they can pass along at least some of the higher costs to foreign customers used to rock-bottom prices.
Wal-Mart, which bought $18 billion worth of goods directly from China last year, has so far managed to keep "cost increases to a minimum through negotiation and leveraging our volume," says Andrew Tsuei, the giant retailer's vice president for global procurement. "However, we're seeing signs of more increases around the corner."
Yue Yuen, a shoemaker that employs 160,000 workers in southern China and supplies Nike, Adidas, Timberland and other shoe companies, says its prices are rising, too. But spokesman Terry Ip says that increasing materials costs are having a bigger impact than rising wages and that the retail mark-up on shoes is so high, consumers might not notice the difference anyway.
Darren McKinney, spokesman for the National Association of Manufacturers in Washington, says the labor shortage is a sign of China's economic maturity. "Every industrializing economy has to cross this labor bridge at some point," McKinney says. "It's happening in China, and it's good."
Well, I didn't think I would live to see it!
So I guess the bag of 10,000 balloons at WalMart will go up $.08!
edit: Will this mean the illegals from Mexico will now be working to get to China?