Trends show hunt for labor becoming fiercer than ever

Given that resumption of production after the Lunar New Year hinges on availability of sufficient manpower, it is common for labor-intensive manufacturing hubs in China to compete with each other to attract workers every spring. Compared with previous years, however, this year's competition has started early and seems fierce.

Due to reductions in orders, production capacity contraction, many migrant workers left having no work. Therefore, places going all out to resume and expand production are seeing increased labor gaps.

With the in-depth implementation of the rural revitalization strategy, many development opportunities have been created, making "returning to the countryside" a choice for a new generation of migrant workers. As traditional labor-exporting provinces continue to improve their industrial policies, and some labor-intensive enterprises have set up factories in central and western regions, some migrant workers' enthusiasm to find a job away from home has weakened. They instead want to find something nearer home, making it harder for the established manufacturing hubs to find labor.

Given the declining labor force as a result of an aging population, the hunt for labor will get even fiercer in the future. National Bureau of Statistics data show that in 2022 China's working-age population aged 16 to 59 decreased by 6.66 million from the year before. It is clear that labor resources will become tighter and labor costs will continue to rise in the near future.

To alleviate the difficulties faced by enterprises, multiple measures should be taken to swiftly deliver job information to potential employees, and improve the efficiency in the docking of labor supply and demand. The authorities should improve the working environment and labor treatment, and strengthen labor security. How to accelerate the upgrading of the industrial structure to adapt to changes in the labor force structure and speed up the removal of barriers to population mobility are also the problems to resolve.