China’s manufacturers forced to up wages to US$1,500 a month, with workers unwilling to return ahead of Lunar New Year
- Some workers who had been laid off during the coronavirus downturn are not willing to travel back just a few months before the upcoming Lunar New Year holiday
- Factory managers have hiked monthly wages by 25 per cent to 10,000 yuan (US$1,530) – well above the average starting wage for graduates, according to local media
China’s manufacturing recovery, fuelled in part by demand from Covid-constrained consumers abroad, has soared past expectations this year – so much so that factories are now struggling to fill a shortage of blue-collar workers to clear mounting orders.
The country’s output of industrial robots, computer equipment and integrated circuits has roared back from its coronavirus paralysis. For those items, production for the year to November is up 22.2 per cent, 10.1 per cent and 15.9 per cent, respectively.
The remarkable turnaround comes as China has mostly eradicated the virus, and contrasts with the sluggish comebacks seen in major industrialised peers, where factories are still struggling with pandemic disruptions and the hit to demand.
China’s global export share increased to more than 13 per cent in the second and third quarters from 11 per cent last year, according to Nomura, resulting in the highest share percentage for any quarter since at least 2006 when the investment bank started compiling the data.
