Labor force will shrink after 2015 - Zhang Juwei

Zhang Juwei by Fantake via Flickr

Are you already worried about the shortage of labor and its rising costs in China? Zhang Juwei of the Chinese Academy of Social Sciences (CASS) tells Business Week the real labor problems are only developing after 2015.

The workforce—those from 15 to 64 years old—will plateau at almost 1 billion in 2015 and then start to shrink, figures the World Bank. These trends will help drive labor costs higher. "Over the next 10 years, this will become a serious problem," says Zhang Juwei, deputy director of the Institute of Population and Labor Economics at the Chinese Academy of Social Sciences.

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Do you want to hear more from one of China's leading academics on its labor force? Zhang Juwei is a speaker at the China Speakers Bureau. When you need him at your meeting or conference, do get in touch.

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Unemployed students at an overheated labor market - Shaun Rein

Shaun Rein by Fantake via Flickr

Higher education in China is lagging behind, forcing 25 percent of its graduates to stay unemployed, while companies have a hard time to find qualified employees to deal with its economic growth, writes Shaun Rein today in Forbes. One of the country's more serious conundrums as unrest among its students is growing, traditionally one of China's sources of social unrest - not the farmers,

Shaun Rein:

Class sizes are too big, teachers teach by rote, and students are not given the interdisciplinary liberal arts education they need... Rather, students typically focus on a single discipline, like accounting, for their entire four years of college, leaving them unable to adjust to a global business environment that demands flexible thinking. They are bright and eager, but unprepared to work effectively for a global corporation..

My own firm, the China Market Research Group, is actively hiring but simply can't grow as fast as we want and as the market is demanding. For every thousand résumés we receive, we find perhaps two candidates who are qualified. Our standards are extremely high, but many multinationals are facing the same problem.

China's education system needs to change and change fast if China is going to prevent social instability and ensure a steady transition from low-cost manufacturing to a more service-oriented economy.

More in Forbes

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Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch. Are you looking for other speakers on labor issues? Do click here.

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China is everywhere in the food chain

LA Times adds a new element in the ongoing debate on the Chinese food scandals. US firms like Mission Food Corp. and Tyson Food inc. have been trying to ban all Chinese food additives from their products. The conclusion: it is impossible.

In the last decade, China has become the world's leading supplier of many food flavorings, vitamins and preservatives. Like fingernail clippers, playing cards, Christmas ornaments and other items, some food additives are available in vast quantities only from China.

Much more at the LA Times. (h/t Danwei's aggregator).

Taiyuan refuses to compensate illegal miners

The decision by the municipal government of Taiyuan to no longer compensate miners of their families if they are involved in accidents in illegal mines has sparked off a fierce debate, also in the official media. The People's Daily summerizes (in a translation by CDT)

Should the government “pay the check” for workers who die at illegal mines? The admonition from Taiyuan Bureau of Land Resources brought on disputes from many quarters. Advocates said that to fight illegal mines the government should adopt multiple resolutions. It should not only heavily punish illegal mine owners, but should also punish peasant workers who participate in illegal mining. Opponents said that aside from the enticement of rich returns from illegal mines, the government’s misconduct should also be blamed for the existence of illegal mines, thus the government should take a certain responsibility for peasant workers whose interests are damaged while working at illegal mines.