The year of 2012 is an important turning point in China's economic, since the working-age population appeared an absolute
decline. Even though the massive stock of labor force covers the risk which arisen from a sharp decline in increment,
the adjustment of public policy allows of no delay.
The situation of China's labor supply may be much more serious than we expect. Entrusted by NDRC, SLHR of RUC
has just completed a report of Development Strategy Study of the Transfer Employment of Chinese Rural Labor. The
report estimated that if the current workload and the land system of the rural labor force keep unchanged, China's rural
surplus labor force will have no left by the year 2013.
Deal with the ear of after population bonus, the urgent task is to increase the supply of labor force and improve labor
productivity by adjusting public policy. But in the long run, we should adjust the population policy.
Lack of Workers Become Normal State
A member of the National Committee and the chairman of Beijing Linda Investment Group Li Xiaolin said to reporter from
First Financial Daily that in recent years, employment for enterprise is actually a question. Because the cost of living in
big city and Eastern region is rising too fast, a lot of low-end labor back-flow to the Midwest region to transfer to the
nearest area, which also increase the weight of lacking workers in the big city.
Professor Zeng Xiangquan, Director of SLHR and CIER,said to our correspondent that regional changes in the
structure of the labor supply is an outstanding question. Coastal areas experienced rapid rise in the composite cost
including labor cost., and capital began to transfer to the Midwest.
Although China has made some reforms in the occupation technology education in recent years, the lack of technicians
has not improved from 2004, so it has also become a major bottleneck for China's industrial structure upgrading.
Labor Cost Pressure Suddenly Increase
Information issued by MHRSS shows that 24 provinces across the country adjust the minimum wage in 2011, with an
average increase of 22%. While in 2012, 23 provinces raised the minimum basic wage, and most of the their adjustment
is more than 10%. Some of them adjust even as high as 20% or more.
Zeng Xiangquan said that the standard of minimum wage was just a passive adjustment that government facing the
raise of wage in the labor market. Under the current state of lacking labor supply, the wages paid by the enterprises is
certainly higher than the minimum wage. A number of labor-intensive enterprises in coastal areas still use high wages
to attract workers. Since it may be difficult to sustain high wages, many companies can not afford it.
How to Deal With It?
Professor Zeng Xiangquan said that employment policies now focus on how to make people work longer and elderly
human resources also play a role in it.
The cause of the fundamental change is the reality that the existing population policy has led to imbalance of population
structure,so young labor population decline very fast.
However, there are also some other effective way to increase the supply of labor. Professor Zeng Xiangquan hold the
view that first of all, we can release more and more rural labor by land reform. Secondly, we can develop by-business
pattern to Realize the nearest transfer though the development of small and medium-sized towns and rural non-agricultural
industries. Thirdly, we should enhance the participation of non-agricultural rural labor surplus in middle-aged and the
expand the quantity of rural labor supply.
National People's Congress, director of the Population and Labor Economics Institute in Chinese Social Sciences
Research Academy, Cai Fang believes that the reform of the household registration system will have an immediate
effect to improve the participation rate of the rural labor force. |