"China's “surplus” labour has been used up," The Economist notes, and demographics will soon affect its economy--"factory bosses have recently complained of labour shortages and wages have been rising more rapidly."
Not a huge surprise actually.
Just over a year ago, the NY Times reported on August 29, 2007, that wages are on the rise. Of course, Chinese officials would not admit any labor shortage. Instead, according to them, "there is a shortage of young workers willing to accept the low wages that prevailed in the 1990s." Hello? Isn't that a textbook definition of shortage?
However, given the global economic slowdown, and the recession in the US, plus the post-Olympic economic impacts in China, I wonder what the impact on wages there will be--I am guessing there will be a downward pressure on Chinese wages.
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