In todays NYT, there is a article that claims China is running out of cheap labor. Not only that but they have begun to out source some of the factory work that made them the economic power they are today.The article goes on to talk about the raising wages,the number of college grads, and the impact of the 1 child per family rule.
SHENZHEN, China -- Persistent labor shortages at hundreds of Chinese factories have led experts to conclude that the economy is undergoing a profound change that will ripple through the global market for manufactured goods.
Wouldn't it be ironic in a sad kinda way, if the USA was to become a umm err, benefitor of that policy to outsource ? Well, that was what made me read the article. Guess what ? Ain't gonna happen, at least not for quite a while. Maybe, just maybe though, this could start some of big business to rethink the expense of moving overseas. More Details below, but here's the link.
http://www.nytimes.com/...
The next quote box sounds kinda familiar doesn't it? Sounds to me like something we read in our newspapers about 20/30 yrs ago. When America was full of rising wages and workers benefits because we had the power that came from being a real commodity. Our wages, rights and Benefits rose when it was the worker that got to choose the job, instead of having to take anything, anything at all, to pay the rent and feed the family.
For all the complaints of factory owners, though, the situation has a silver lining for the members of the world's largest labor force. Economists say the shortages are spurring companies to improve labor conditions and to more aggressively recruit workers with incentives and benefits.
The changes also suggest that China may already be moving up the economic ladder, as workers see opportunities beyond simply being unskilled assemblers of the world's goods. Rising wages may also prompt Chinese consumers to start buying more products from other countries, helping to balance the nation's huge trade surpluses.
The article goes on layout what a raise is, and to tell us what a typical Chinese factory makes. These numbers alone are the reason I don't think we will see much benefit to us anytime soon.
According to government figures, minimum wages -- which averaged $58 to $74 a month (not including benefits) in 2004 -- have climbed about 25 percent over the past three years in big cities like Shenzhen, Beijing and Shanghai, mostly by government mandate.
Wages at larger factories operated on behalf of multinationals -- which are typically $100 to $200 a month -- are also on the rise.
Well Duh, no wonder our factorys are overseas in China. Now if we can all agree to work for $200 a month, I think we can save this country. So just what freaking need is there to outsource if all they have to do is pay a little more to attract more workers off the farms ? Haha, heck no, give them a raise ? Are you nuts ? We still have other places to exploit yet. Are you wondering where they are going to find cheaper labor than that ? I mean just how cheap does it need to be ? Oops, sorry, coffee is kickin in. I digress.
"Many companies are already moving to Wuhan, Chongqing and Hunan," Ms. Hong said, ticking off the names of inland Chinese cities. "But Vietnam, India and Bangladesh are also benefiting. We're bullish on Vietnam."
Bangladesh and Vietnam ? Bullish ? Yeah I guess those people have been beat down enough to accept just about anything at a chance to just eat. Is that the level the American worker needs to hit before the circle comes back around to us ? I'm seeing many things that sound all to familiar to just dismiss, tho I'm sure I will in the end.
Now this is all about cheap labor, people wanting to be paid more, and moving up the ladder as they better themselves. Kinda like the American Dream, ya know.
Workers are sharing more information about factory conditions among friends and learning to bargain and leap from job to job. They are also increasingly ambitious.
"There's still a lot of cheap labor, but Chinese workers are getting skilled very quickly," said Ms. Hong at Goldman Sachs. "They are moving up the value chain faster than people expected."
To sum up I'll leave you with one more quote that seems to ring another bell. I remember the times people moved to find a better job, and not just to find any job. Seems to me as we chased the American Dream and White Picket Fence, we were much like the Chinese today. While outsourcing/incourcing the lower skilled jobs, we thrived to better ourselves. Did it serve us well to do that ? I don't know, I just know this all sounds way too familiar.
"When the economic reform started, migrant workers were very hard-working, and usually stayed for a long time at factory jobs, but the new generation has changed," said Chen Guanghan, a professor at Zhongshan University in Hong Kong. "They are reluctant to take factory jobs that are harsh and pay very little."