Manufacturers Still Face Labor Shortage even with Salary Increases
Shenzhen manufacturers were only able to recruit 20 percent of blue collar workers during the first quarter of this year. This report is showing that most local enterprises are still facing labor shortages even with the additional 10 to 15 percent increase in salaries.
Higher salaries is one of the reasons that made it hard for local enterprises of finding laborers since around 90 percent of these enterprises have already increased salaries by 5 to 10 percent. And because of these enterprises were having a difficult time in finding or recruiting low skilled workers and technicians with labor shortages more profound in small and micro enterprises than medium sized enterprises. Unlike SMEs, large companies faced a shortage of technicians and other personnel in their first quarter citing a 60.9 percent in shortage of technicians and 52.2 percent shortage of research staff.
This made SMEs to raise salaries in hopes to address the shortage, with a fifth of these SMEs increasing salaries 10 to 15 percent and 41 percent raised salaries 5 to 10 percent. Other enterprises are preparing to increase their salaries if it will prove to be an effective way in recruiting more workers.