Updated July.8,2008 10:29 KST

Report Warns of Labor Shortage in China
The Ministry of Knowledge Economy on Monday released a report warning that China will face a shortage of labor from next year. According to the report, the shortage of rural migrant workers that began in the Guangdong Province in 2004 has spread from the east coast to the central and western regions.

A survey by the Labor Security Administration of Guangdong Province in the cities of Guangzhou, Shenzhen and Huizhou revealed that the province lacks 2 million laborers, the report said. Hubei and Zhejiang provinces are reportedly short of 400,000 and 860,000 workers respectively.

The report said the labor shortage is partly explained by the development of rural areas, decrease in the wage gap between urban and rural laborers, reduction in the absolute number of rural migrant workers, and lack of advanced labor force resulting from industrial restructuring.

¡°To tackle the labor shortage in China, a fundamental change in the current management system that aims to generate profit by using cheap labor is needed,¡± the report said. ¡°China will need a new profit model which would focus on developing technology, quality and design.¡±

(englishnews@chosun.com )