Factories hit by labor shortage

Manufacturers in southern China, the much-touted �workshop of the world�, are reporting a growing shortage of migrant labor, a government report said. According to the Labor Ministry, the shortage is caused by rising income levels in rural areas and a resulting unwillingness to take on jobs with poor wages and poor conditions. In recent months, the report said, some manufacturers have had to refuse orders or cut production because they cannot fill jobs. Guangdong province was hardest hit, it said, reporting a shortage of more than 2 million workers. However, the ministry said the shortage was unlikely to derail China's economic growth given the country's huge overall surplus of labor. The report also noted that average monthly wages in the factories of the Pearl River Delta have risen by just RMB12 (US$1.45) in the past 12 years.