Monthly Newspaper
"SewTrade"

April 2011 Issue

Top of Month

The Labor Market in China Changes Greatly

The Apparel Industry of Japan which Tries The Breakaway from Over Concentration of China

In February, this year, Japanese media reported that GDP (Gross Domestic Product) in 2010 of China ranks second to the U.S. economic big power in the world, exceeding Japan.
Like that, the economic development of China in recent years has a remarkable thing. In connection with it, workers' shortage and the rise of wages or prices pose a problem serious for a business company in China called "factory in the world".
So far, a lot of workers flowed into urban areas from the local farm village, and have supplied the labor force in China. One of the backgrounds which changed with such a flow has activation of inland economy.
The rise of labor wages accelerated focusing on the coast part, and backed up inland relocation of a company especially last year. Furthermore, policy support of stimulation of domestic demand also became a fair wind, and development of regional economy gained momentum for it. As a result, it is said that the difference of wages with a coast part was shortened much more. According to the China media, the wage differential of monthly amount of both areas is taken as the about 200 to 400 RMB. When taking into consideration district workers' homecoming expense, the high prices of commodities of a coast part, etc., it is said that the wages of a coast part are not special wages for workers. Therefore, the company of a coast part is desperate to secure the workers, provides every means and is striving for reservation of the labor force. Now, the labor market in China is changing into the workers' "seller's market" from the "buyer's market" by old management. Thus, the time of the cheap labor force of China like former ended. Such a situation poses a big problem for the sewing industry and apparel industry which is said classic case of labor-intensive industry. Especially the sewing industry of Japan where it depends more than 80% of import of sewing goods on China fears that the production in China does not fulfill demand in this situation. So, Japan is trying the breakaway from the old China over concentration.

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