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Sep 2
Angry Bear on China’s Labor Supply

Yesterday, Angry Bear quoted my previous post about a potential labor shortage in China, to show “potential future inward shift of available (labor) supply in certain regions.” In fact, that is only one side of the story. There are other observations that support the hypothesis of “China’s labor supply is not as elastic as it used to be,” given by knzn, a mysterious but well known commentator in economics blogosphere.

After 30 years of economic growth, the cost of living has increased considerably in several major metropolitan cities such as Shanghai, Beijing and Guangzhou. In addition, as more funds are redistributed to the agricultural sector, many rural areas and small towns have also developed their own small scale factories and local businesses. While these new changes don’t mean there is an imminent shortage of manufacturing workers in China, the workers from the agricultural sector today do have more options when considering where to work.

Angry Bear’s blog is one of the well-known Business and Economics websites in the U.S. To find out where the angry bears are, click here.

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