#China #Workforce #Economy #Asia: -Size of Chinese workforce declined for second straight year in 2013-trend which continued in 2014. - IMF forecasts: Chinas labour surplus of 150 million will drop to 20 million by 2020-by 2030 they will have a predicted labour shortage of 137 million workers. -ISSUE: demographic time bomb: [IMF believe its is inevitable and irreversible] working age population-(those between 20-39 year old) is shrinking -For workers this is good news as it leads to higher wages and greater bargaining powers-with jumps already in wages from 12% to 15% across China in the past decade. BUT: Higher wages = lower profit + less investment. China are the worlds biggest exporters. OVERALL: -Despite their political issues, the Chinese are innovative + are making superior products, with higher quality as well as developing brand loyalty. So maybe they will continue to export regardless of small changes in wages. However, the demographic bomb-remains a growing problem.
Posted on: Sun, 28 Dec 2014 13:37:47 +0000
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