ABSTRACT

Who would guess that there could be a shortage of factory workers in China, the world’s most populous country? But after decades of abundant cheap labor willing to put up with long hours and uncomfortable working conditions, the Pearl River Delta-southern China’s manufacturing heartland, which produces a large share of the world’s shoes, clothing, and electronics-is facing labor shortages estimated at 2 million under the level of demand. Workforces in other regions are also in short supply. As a result, more Chinese manufacturers are paying much closer attention to something they rarely did before: keeping their low-wage workers happy and attracting new ones.