Labor need haunts China – Philip Bowring (Updated)
From the International Herald Tribune (link):
There is much talk of a labor shortage in China. Some bemoan its impact on wages and profit margins. Some see it as proof of the dynamism of the economy, some as a harbinger of declining competitiveness in international markets. Others dismiss it as a largely mythical invention of employers unwilling to offer wage increases that are higher than inflation.
Does China really have a labor shortage? And if so, what does it mean?
Update (4/8/06): See also “Trading Up in China” from the New York Times.