China's inland cities face labor shortage

 

Fuyang city in east China's Anhui province, is home to over 10 million people, but around a fifth of the city's population traditionally leave every year, to become migrant workers in other parts of the country.

The annual exodus is having a negative effect on the local economy.

The annual exodus is having a negative effect on the local economy, as it tries to expand and for Fuyang's businesses and factories, finding new workers is proving tough.

Zhang Yuntao is trying to make the numbers add up. Only 6 of his digital product company's 64 production lines are currently running. He has 140 workers, but that's far less than the three thousand he planned for a year ago.

Zhang Yuntao said, "I opened here so I could find enough workers."

Zhang's factory is located in Linquan. According to official statistics, the area has a potential labor force of around 860 thousand.

But many aren't qualified to pass Zhang's high standards. Zhang said, "I need experienced workers. There aren't enough of them."

Other factories are also concerned about the situation.

The annual exodus is having a negative effect on the local economy.

Liu Shenghong, general manager of Suitcase Factory, said, "Last year our sales totalled 3 million US dollars. Our target this year is 10 million. So we need to triple our work force. I have already begun the recruitment process."

For Zhang Yuntao, even holding onto his 140 workers is proving difficult.

Zhang Yuntao said, "The staff turnover can be as high as 80 percent. It means we waste a lot of money on recruitment and training."

No workforce means no business. Zhang can do nothing, as order after order slips through his fingers.

Zhang Yuntao said, "The potential turnover is huge. But I don't have the tools. Many clients wonder why I can't take their business. But what can I do?"

It's only recently that factories began appearing in the Fuyang area. Not every local resident seems to be aware of the employment opportunities on offer.

The annual exodus is having a negative effect on the local economy.

"What do you know about the factories in your city?"

"Nothing."

"Do you know they are looking for workers?"

"No."

But local authorities say it's simply a matter of changing people's attitudes.

Liu Qing'an, deputy director of Linquan Industrial Zone, said, "Fuyang people think if they are going to work, they'd prefer going to Beijing, Shanghai or other large cities."

Over the past three decades, millions of Fuyang people have left their hometown to work elsewhere. But now the city needs them to stay, if it is to grow and develop as an industrial base itself.