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China economy
EconomyChina Economy

As China’s coronavirus rebound gathers steam, export-oriented manufacturers struggle to find workers

  • Factories in China’s south and east are struggling to find enough workers to fill surging export orders thanks to strong demand in Western countries
  • The uptick in orders is proving a double-edged sword for many manufacturers, driving up wages and in some case forcing them to delay shipments

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Chinese factory owners scrambling to find enough workers to keep pace with overseas orders. Photo: Xinhua
He Huifengin GuangdongandSidney Lengin Hong Kong

A sharp rebound in China’s manufacturing in recent months, spurred on by surging demand for exports in the West, has caused labour shortages in the country’s south and east, with many factory owners scrambling to keep pace with overseas orders.

Employers are offering higher wages to entice migrant workers back from their hometowns, but analysts say the shortfall in employees is likely to last well into next year.

China’s exports surged at the fastest pace in almost three years in November, the sixth consecutive month of growth, with manufacturers continuing to capitalise on coronavirus restrictions elsewhere in the world.

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Exports grew by 21.1 per cent last month from a year earlier, as China continued to ship medical equipment to combat the virus and electronic goods for people stuck at home.
The export growth has underlined China’s strong recovery from the pandemic, with the economy growing 4.9 per cent year on year in the third quarter and the official survey-based unemployment rate falling to 5.2 per cent last month, the same level as December 2019.

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Millions of new blue-collar jobs are piling on pressure for many workers in China

Millions of new blue-collar jobs are piling on pressure for many workers in China

But amid a tight labour market, the rapid uptick in orders is proving a double-edged sword for many factory owners.

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