The Eclectic Econoclast notes that there is an apparent labor shortage in China, and that the manufacturing wage rates -- both freely set and regulated -- are rising in China to attract workers. According to the NYTimes:
And if wages keep rising... some companies could face a fate familiar to many manufacturers in the United States - they would have to move to a country with cheaper workers.I blame Wal-Mart!
Posted by Kevin on April, 4 2005 at 10:36 AM
McGroarty wrote:Not only are Chinese factories having to compete with higher wages for workers, but China is developing a real middle class. Per capita consumer spending is on the rise, creating demand for even more products from China and elsewhere.
More fun still -- outsourcing FROM India is on the rise as their markets continue to grow.
Jobs will flee to other countries for a while, but eventually we run out of cheap labor countries when nobody's so hungry they'll work for $5/month anymore. This drives automation and competition for labor. Automation leads to cheaper prices. Labor competition results in better benefits, working conditions, and wages. Both widen the middle class.
-- April 4, 2005 02:35 PM ∞
