New Report: Manufacturing Labor in China

In this new report we provide insight into China’s manufacturing labor force. For so long the work horse of the Chinese economy, the area of manufacturing has recently undergone considerable structural change. China is transitioning into its third economic cycle there is a far greater focus on the service sector and as a result the importance of manufacturing to total GDP has diminished. Furthermore, newer technologies are being looked to and the rise of Industry 4.0. is having an impact on investment decision.

In addition to this the generation of worker who provided a cheap, abundant labor pool no longer exist and the new, educated class of individuals do not see the factory floor as a viable career move. Workers are demanding higher wages and the growth of the service industry allows far more options for the average working individual.

In light of this actors are having to adjust their manufacturing strategies and developments and innovations within the industry are being looked to. Some are beginning to leave China altogether for the cheaper labor forces of South-East Asia and India, whilst others are capitalising on government incentives for automation, to reduce dependance and drive factory efficiencies.

Through this report we address these challenges and opportunities and delve into the actions required to engage and attract the best and brightest labor to your operations. It is no longer an option to treat labor as a commodity that can be replaced easily. More limited options exist and it is now the responsibility of the employers to empower the worker and train them to higher levels of efficiency.

This report built upon work conducted by Collective Responsibility in conjunction the International Labor Organisation (ILO) into the impact of automation on ASEAN manufacturing industry and its labor force, but develops insights that are more relevant and focused to the Chinese market.

For the full report please head here. Or find it on our publications page.

 

 

 

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