Reflecting a fundamental change in China’s labour market, insufficient labour supply has become a primary concern for factory owners, according to a survey of 1,200 Chinese manufacturers. When interviewed by the South China Morning Post, IEMS Director Albert Park suggests that “With high worker turnover, [factories] have to pay workers more to retain them.”
The survey has also found that research and development spending as part of industrial upgrading has slowed in recent years. “My interpretation is there is this feeling that [owners are] not very sure that demand is going to improve. So factory owners could be cautious about making large investments,” Park said.
Read the full article on the South China Morning Post.
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