Pearl River Delta still facing labour shortage

AN INDUSTRY survey in China’s Pearl River Delta by the Standard Chartered Bank finds that despite a 9.2% YOY rise in manufacturing sector wages, the region can still expect labour shortages. Nearly 90% of respondents said the labour shortage will be at least as severe as last year.

Standard Chartered said the expected real wage will continue to increase this year by at least 5% as the Consumer Price Index (CPI), on account of inflation, could rise further.

Of the 375 respondents, 28% said they plan raise salaries by a higher rate than in 2013, 14% said they would increase salaries by a rate lower than last year, and the remaining 58% expect to give raises equal to last year.

The Pearl River Delta consists of Guangzhou, Shenzhen, Dongguan, Foshan and Zhongshan in Southern China, where the labour sector consists largely of migrant workers from other parts of China. A survey of 4,173 migrant workers by the recruitment website, daguu.com, found that 35% of respondents had no intention of returning to work. Of those surveyed, 71% said finding a job is easy, but finding a job that pays well is difficult.