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CHINA / Foreign Media on China

A shortage of cheap labor looms
(The New York Times)
Updated: 2006-06-30 15:14

As workers become scarcer and more expensive in the increasingly affluent cities along China's eastern seaboard, the country will face growing economic pressures to move out of assembly work and other labor-intensive manufacturing, which will be taken up by poorer economies in Asia and beyond, and into service and information-based industries.

"For the last two decades China has enjoyed the advantage of having a high ratio of working-age people in the population, but that situation is about to change," said Zuo Xuejin, vice president of the Shanghai Academy of Social Sciences. "With the working-age population decreasing, our labor costs will become less competitive, and industries in places like Vietnam and Bangladesh will start becoming more attractive."

India, the world's other emerging giant, also stands to benefit, with low wages and a far younger population than China.

Even within China, Mr. Zuo said, many foreign investors have begun moving factories away from Shanghai and other eastern cities to inland locations, where the work force is cheaper and younger.

As remote as many of these problems may seem today in Shanghai, the country's most prosperous city, evidence of the changes is already on abundant display. If Shanghai represents the future of China, it is in central Shanghai's Jingan district, where roughly 4,000 people, or 30 percent of the residents, are above 60, that one can glimpse that future.

Squads of lightly trained social workers monitor the city's older residents, paying regular house visits aimed at combating isolation and assuring that medical problems are attended to.

At 10 a.m. on a recent spring morning, Chen Meijuan walked up a narrow wooden stairway to the secondfloor apartment where Liang Yunyu has lived for the last 58 years.

"Good morning, Granny," Ms. Chen called out as she entered the 100-year-old woman's small bedroom. "Did you have a good night's sleep?"

Ms. Chen, 49, earns about US$95 a month as one of 15 agents who monitor the neighborhood's elderly population. Her caseload exceeds 200.

"I usually pay visits to about five or six households a day, stay a little while and chat with them," she said. "For Grandma Liang I am a little more focused, visiting two or three times a week."

After being introduced to a foreign visitor, Ms. Liang regaled her guests with stories, ranging across the decades of the 20th century. She recounted the arrival of Japanese invaders in the city nearly 70 years ago, her opening of a kindergarten in 1958.

Liang Yunyu, who is 100, in her second-floor apartment. Her social worker also visits more than 200 others.

"My daughter always invites me to live with her family, but I feel embarrassed to be with them," said, pausing from her tales. "I'm worried I might die in her home, so I prefer staying where I am."

Her son, Zha Yuheng, 76, a grandfather and retired textile industry worker, lives with her now, which also concerns her. "I am taken good care of here," she said, "but living with my son leaves him with a big burden, I'm afraid."

Mr. Zha protested that his mother was little trouble at all. "Every morning I get water for her and make sure it is not too hot or too cold, and she handles everything else on her own," he said. "She gets up, dresses, makes the beds and even makes food for herself."


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