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Chinese employee shortage not universal

by on09 March 2010

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Some companies OK

 

It seems that the labour shortage in China which is threatening to create parts shortages is not universal.

Some companies are reporting that they are doing OK or have solved the problem Ray Chen, president of Compal said his outfit had solved its labour shortage problem in China by “aggressively hiring”. Although the company's upstream component suppliers are still facing shortages, Compal expects the problems to be solved by the middle of March.

Reading between the lines it appears that companies are aggressively headhunting employees and giving out more cash in employment contracts. The shortage was caused by the Chinese government withdrawing aid from coastal regions to companies that were inland. This meant that many inland workers did not bother coming back after the new year holiday.

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