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Guangzhou firms face labor shortage after lunar new year

Guangzhou firms face labor shortage after lunar new year Source: www.wantchinatimes.com
Date: 14-03-2013
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Following the Lunar New Year holiday, businesses in Guangzhou are facing a shortage of about 110,000 workers and this shortage is expected to reach 1.2 million this year, the local Guangzhou Daily reports, citing government figures.
 
Although some textile manufacturers suffering acute labor shortages have begun a recruitment drive this month, they have only had limited success, the report said.
 
Many coastal cities, including Guangzhou, have been facing labor shortages to different extents since 2003. The situation worsens after the Lunar New Year holiday —known locally as Spring Festival— every year as many rural migrant workers do not return to work in the cities after going home for the annual holiday.
 
The Guangzhou municipal government carried out a survey between December and January on 326 enterprises employing 219,300 migrant workers to estimate labor demand over Lunar New Year. The results released on Feb. 19 show that more than 90% of workers were expected to return to work at these enterprises within two months after the holiday and that they would face a shortage of 110,000 workers, slightly fewer than the shortage of 113,800 workers seen at the same time last year.
 
The report said that more than 80% of the businesses had an immediate demand for workers after the holiday and were even willing to raise employees' salaries by 9%-12.5%.
 
According to Guangdong government figures, at the end of 2012 businesses' demand for workers grew by 15.2% year-on-year and demand is expected to increase in the short term.
 
At the same time, the recruiting market has also picked up. A planning executive at a recruitment company said his company had organized two events this month which were attended by about 7,000 people during the first two days.
 
The executive said that private enterprises have the highest demand for employees, with talent in the technology, marketing and sales and administrative fields the most sought after.
 
The report said that after Lunar New Year, Guangzhou's clothing manufacturers have been so short of workers that some have taken to setting up bulletins by roadsides.
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