Worker shortage worsens for electronics manufacturers in China

A recruitment fair in Fuzhou, Fujian province. (File photo/Xinhua)

A labor shortage at notebook computer factories in China has become a serious problem with a majority of shipments of new products running on Microsoft's Windows 8 system scheduled for September, prompting recruiters to demand higher fees.

Ray Chen, president and CEO of Taiwanese notebook computer manufacturer Compal, said the launch of Windows 8 products in late October had forced all PC makers to schedule their shipments for September and October.

Chen said the uncertainty surrounding the popularity of these new products in the market has posed a challenge for suppliers, as it requires flexibility in manufacturing and affects the recruitment of additional workers.

The fees charged by recruiting agencies for hiring a new worker have surged since late August from 200 yuan (US$32) to up to 800 yuan (US$127) in Suzhou in eastern China's Jiangsu province, a hub for major electronics manufacturers.

These manufacturers have already recruited their workforce before the peak season, between September and January, creating a manpower deficit for other companies, especially component manufacturers, who say they are finding it hard to hire additional staff.

Companies are also luring new workers with higher wages, with Taiwanese electronics casing manufacturer Catcher Technology doubling the average monthly salary of 1,450 yuan (US$230) in Suzhou, a component manufacturer said.

A manufacturer operating in Chongqing in southwestern China said companies there are also facing a shortage of workers during the peak season, despite labor shortages being less of an issue in the inland city.

Local authorities are offering a subsidy of 1,000 yuan (US$158) per worker on the fees paid to recruitment agencies, thus reducing these companies' labor costs, the manufacturer said.

Resource：Want China Times