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**Vibrant62** · February 4, 2012, 10:26 PM

Re: China - Labor Shortage in Guiyang services industry after Spring Festival

Is this the first report of labour shortages in this area or is this a new phenomena?

**sharon sanders** · February 5, 2012, 08:03 AM

Re: China - Labor Shortage in Guiyang services industry after Spring Festival

This is the first report I have seen. Evidently after the Spring festival 2012 there is a labor shortage. Merchants have had to raise salaries to attract workers and this has resulted in higher costs for items which are remaining at Spring festival pricing.

This is unique in China from the reports I have seen. In the global recession/depression the demand for goods manufactured in China has dropped significantly resulting in mass layoffs, protests etc. From Washington Post quoting a Chinese report February 1, 2011:

"Exports remain sluggish, with the index for new export orders down 1.7 percentage points to 46.9. Imports likewise were feeble at the same level.

The past two months of improvement indicate a “gradual stabilization of the Chinese economy,” said federation analyst Zhang Liqun. But he added that 'the decline in new export orders reflects the weak level of external demand. Such external factors require close attention.'"

To remain competitive globally some manufacturing is moving inland:

"After being shaken by a series of suicides in the costal factory hub of Shenzhen about two years ago, Foxconn, the world's largest contract electronics manufacturer, responded by raising wages twice in its Shenzhen plant, which used to house 450,000 workers, and stepping up its drive to transfer a large portion of production to interior provinces, such as Henan and Sichuan.
Like other firms that have relocated their labor-intensive sectors to the less costly central and western provinces, Foxconn's move to the interior is a natural result of cost control consideration.
The minimum wage in Shenzhen has reached 1,500 yuan ($237.5) per month, but the base monthly salary in Henan stands at 1,080 yuan despite an over-30-percent hike last year. Other production costs are also lower in Henan and other inland provinces."

Typically in China there is a surge of financial activity during the Spring holidays but this year it appears activity was down significantly at 81% from the previous year due to weak consumer demand.

I conclude that any labor shortages are an anomaly in the Chinese economy.

**Vibrant62** · February 5, 2012, 08:36 AM

Re: China - Labor Shortage in Guiyang services industry after Spring Festival

This article from August 2011 cites a 3.21% unemployment rate.

http://www.hktdc.com/info/vp/a/wr/en/1/5/1/1X072GG8/China-Western-Region/Guiyang---Guizhou---City-Information.htm

Impossible to know if this is accurate or not, but with a population of almost 4m that would equate to 40,000 unemployed.

**sharon sanders** · February 5, 2012, 09:01 AM

Re: China - Labor Shortage in Guiyang services industry after Spring Festival

It appears that the 2011 report is a chart for 2010 economic figures. It is hard to track back when the economic slow down hit Guiyang. I will see what else I can find.

**sharon sanders** · February 5, 2012, 09:09 AM

Re: China - Labor Shortage in Guiyang services industry after Spring Festival

machine translation -

Guiyang service price during the Spring Festival soared
(February 2, 2012 17:00:27 Source: Guiyang Evening News)

Has already begun to work, the New Year atmosphere of Guiyang is still strong. General lack of car washing, housekeeping, care workers, catering and other service industry labor, service industry employment prices.

Car washing prices triple jump

snip

Car wash shop owner said that during the Spring Festival workers, mostly home for the holiday, workers will insist on work demanding a wage rise in labor costs led to the car wash prices to a certain extent.

The hotel staff to subsidies

"The Spring Festival is the busiest time of the year of food and beverage industry, and many attendants should be the return of the New Year to highlight the problem of labor shortage."

Guiyang Holiday Inn lobby Zhengjing originally into a hotel employment gap, during the Spring Festival to return home attendants undergo the gap is now almost up unexpectedly, employees every day busy in order to ease the pressure, the hotel even sent a security electrician to battle serve later.

It is understood that in order to deal with the "labor shortage", Guiyang, many hotels, leaving the staff of the New Year to work, even if out of a double year-end awards, subsidies and other benefits, or unable to retain the return of the customer ".

"Now we have taken two ways to slightly ease the employment gap, a winter intern, while another is paid recruit part-time, but more difficult to hire trained the part-time." A hotel manager introduced.

Zhttp://big5.xinhuanet.com/gate/big5/gz.xinhuanet.com/2008htm/xwzx/2012-02/02/content_24634397.htm

**sharon sanders** · February 5, 2012, 09:15 AM

Re: China - Labor Shortage in Guiyang services industry after Spring Festival

Here a reporter is interviewing migrant workers who are leaving Guiyang after the Spring holiday to search for work. Why are they leaving if there is a workers shortage in Guiyang?

machine translation

Migrant workers after the holiday where to go to work?
(January 22, 2012 09:52:38 Source: Xinhua Guizhou Channel)

Migrant workers after the holiday where to go to work?

YANG Hong-tao, since Lei Yan, Chen Qiang

Reporter to interview some migrant workers return home in Guiyang train station, bus station learned that the majority of migrant workers, especially young migrant workers Chinese New Year will continue to the coast to work; part of the migrant workers to the province to work will reduce and look forward to the nearest place of employment.

From the primary selection

Spring Festival travel peak period in Guiyang Railway Station, the bus station can be seen everywhere carrying a portable large bags full of migrant workers return home. Reporter to interview a number of migrant workers returning home from coastal areas to understand, the Guizhou outside workers who mostly worked in low-tech, labor-intensive industries, due to the economic crisis, and change jobs frequently, not high income. Which, in order to increase their knowledge, gain experience, their livelihoods, some migrant workers, especially their twenties and thirties of the migrant workers that the "Zaikuzailei have to go home,".

Tsai Fu-zhong, a 40-year-old migrant workers, and farming to support their families can make do with live, now can basically ignore the land revenue, in order to live better, have driving through.

Porters in Yiwu Chen Longhu calculations to reporters: working nine months of last year, his income of about 2.5 million more than 8000 yuan, a three rent, utilities and other living expenses, his wife, the child is ill spent 5,000 yuan and parents cure spend more than 10,000 yuan. "After the New Year will be returning to Yiwu, intend to find a job to earn money and more live."

more...

Zhttp://big5.xinhuanet.com/gate/big5/gz.xinhuanet.com/2008htm/xwzx/2012-01/22/content_24587143.htm

**sharon sanders** · February 5, 2012, 10:20 AM

Re: China - Labor Shortage in Guiyang services industry after Spring Festival

Here several provincial officials travel to Guiyang to apologize for the hardships of the continued economic downturn.

Zhao Zhi visited condolences to enterprises in difficulty difficulties workers and urban subsistence farmers
(January 21, 2012 08:56:47 Source: Guizhou Daily)

January 20, the Provincial Governor Zhao Zhi braved the rain, winter rain, and the Provincial Standing Committee of Guiyang municipal party committee secretary Li Jun, vice director of the Provincial People's Congress, the President of the Provincial Federation of Trade Unions Yuan Monday Road to Guiyang City Qingzhen City Station Jiezhen visited condolences, on behalf of the provincial government and Li Zhanshu secretary to warm to enterprises in difficulty, which the difficulties workers and urban low households.

Guizhou Chemical Fertilizer Plant Co., Ltd. was founded in 1968, the old state-owned enterprises are subject to various factors affect the production and operation downturn in recent years, the difficult lives of the workers. After hearing the work reports of the people in charge, that the enterprise through the restructuring was to resume production in the second half of last year, the stability of the workforce, Zhao Zhi very pleased. He encouraged enterprises to seize the province's learning implementation of the State Council on further promotion of the Guizhou sound and rapid economic development a number of observations, "the spirit and accelerate the development and accelerate the transition to promote the cross and further promote the industrialization, urbanization, agricultural modernization excellent situation, vigorously promote enterprise reform and restructuring, deepen the reform of property rights, and further accelerate the renovation, the adjustment of product structure, and to promote corporate restructuring and upgrading. Zhao Zhi on behalf of the provincial government sent condolences to gold, to extend holiday greetings to the vast majority of workers, and companies really care about the lives of the workers to ensure that every workers are able to live in a warm, happy Spring Festival.

Subsequently, Zhao Zhi and his party came to your company employees, Province Labor Medalist Zhou Jing home, and he kindly pulled up homemade. Zhou Jing told Zhao Zhi than 20 years working in the enterprise before the monthly wages of up to 1000 blocks, last year's corporate complex postpartum, get more than 3,000 pieces per month, the mood of the workers, the people stable. Zhao Zhi hear very pleased to say that: "the worker comrades rest assured that the province and Guiyang City to study and formulate a package of support for your technology program to help companies out of the woods as soon as possible."

more...

Zhttp://big5.xinhuanet.com/gate/big5/gz.xinhuanet.com/2008htm/xwzx/2012-01/21/content_24582987.htm

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China - Labor Shortage in Guiyang services industry after Spring Festival

China - Labor Shortage in Guiyang services industry after Spring Festival

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