The Shortage Of Migrant Workers Is Getting Worse! Young People “will Take Delivery, Not To The Factory”

Everbright Securities said that the Chinese labor market is experiencing a “big change”.

On the one hand, the supply of labor is decreasing, and on the other hand, young workers are obviously more inclined to life-oriented services than to traditional manufacturing.

On the major media and websites, the topic of “Young people prefer to send out and not go to the factory” has also sparked extensive discussions.

“Escape” manufacturing, heading to the service industry

The manufacturing industry generally reflects the phenomenon of “difficult recruitment”, especially in factories in coastal areas. A large number of young people “escape” from traditional factories and assembly lines, and the number of young people in the take-away industry is increasing.

At present, the recruitment of factories after the Spring Festival has entered an intensive period, but many large-scale job fairs have reflected the problem of “recruitment shortage”. The China Youth Daily said that Zhejiang’s business owners said that this year’s “recovery” of recruitment is not a little bit, and even faces the situation of “no grain”.

Specifically, Everbright Securities said:

The phenomenon of the transfer of migrant workers to the service industry is more obvious. In recent years, the proportion of migrant workers in the manufacturing industry has been declining, and they have continued to shift to the construction and service industries. Substitute industries with manufacturing include: construction, accommodation and catering, residential and other services, transportation, warehousing and postal services, water, environmental and utility management, wholesale and retail, mining industry.

What is the reason?

The change in employment choices that “the young people would rather send a takeaway than go to the factory” is the result of the invisible hand of the market to allocate labor resources.

Many service industries have higher average wages than manufacturing

  The labor shortage in industrial production actually reflects the problem of the inversion of labor value in the labor market of industrial production. Last year, China’s per capita GDP was close to 10,000 US dollars, and a considerable number of industrial workers should enter the middle income of society. The reality of the current industrial workers’ labor shortage shows that the labor market value of industrial workers has been greatly reduced.

The reason for this is not just the issue of paying workers, but also the entire market price signal system and institutional problems such as taxation, labor protection, and social management.

How to solve the problem?

China Youth Daily believes that attracting young people back to the factory is imminent:

Nowadays, it is a crucial period for China’s manufacturing transformation and upgrading. If a large number of young and prosperous young people prefer to send out and do not want to go to the factory, it will inevitably lead to a shortage of labor in the factory. Under the premise that normal production is in jeopardy, what transformation and upgrading?

First of all, relying on treatment to attract young people, factories must change the status quo of low pay, high intensity, and low security, so that workers have a sense of gain, and they are willing to take current work as a career rather than a means of making a living.

Second, the factory has to change the concept of treating workers as “machines.” In addition to work, the factory should also provide young people with a rich spare life.

In addition, factory companies can also adopt a “transposition” approach to solve the problem of lack of young labor, and can open factories to labor-intensive areas to enable young people to achieve employment at home.

Post time: Mar-16-2019
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