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Is Unemployment In China Good For Your Business?
By Paul Midler | February 17, 2008
Someone has declared “the party is over” because of looming unemployment (due to a downturn in the global economy). I have doubts that China’s economy is going to slow so much that it will affect employment , but, anyway, a decrease in demand for labor might be helpful in offseting the effects of “agflation” (agricultural inflation).
What concerns me far more than the cost of labor in China is the quality of labor.
Topics: China |
February 17th, 2008 at 9:00 pm
During a global downturn, I can see a degree in Chinese exports, particularly to the US. This may put some upward pressure on unemployment figures in China for factory workers. However, as you rightly point out, quality labor is still very tough to find, and especially in the “office job” market, I don’t expect to see any let up in demand!
February 17th, 2008 at 10:07 pm
I don’t see wages going down, that’s for sure.
February 20th, 2008 at 5:24 pm
This will translate into wage inflation in China, then in the US; Guangdong factories claim that they are already short of 2M workers.
This will mean that Americans will pay more for Chinese goods, and some factories in China will move to new manufacturing centers in Vietnam, Laos, Cambodia and Thailand.