China is known among companies for its cheap labour force. More and more companies are trying to take advantage of this fact. An average hour of a Chinese worker cost 0,81 US Dollars which is only 2,7% of the wage of the American counterpart. But this trend is about to change! Chinese workforce is gaining in bargaining power! That is the first trend in the labour market.
Companies all over China reporting strikes due to dissatisfied workers. Many plants have been shut down for days causing companies to lose a lot of money. One example is Honda that has a plant in Bejing. Due to the strike activities Honda agreed to increase its wage by 47%. The increasing bargaining power of the Chinese workforce makes it for foreing countries more expensive to produce in China.
Another trend is the diminishing Chinese workforce. Even the Chinese workforce makes up the world largest labour force with a total of 112 million people, the workforce is going to decline. Reasons for this is the Chinese one-child-policy that was enacted in the late 90´s to secure a more stable growth of the population. But in the future the Chinese are going to have problem to their population which is steadily growing older.
Nowadays many people move from the center of China into big cities to find jobs. It is estimated that another 70 million people are available in villages that could migrate to big cities. Nevertheless this trend will stop as well since the population is growing older and the motivation to migrate in an advanced ages declines.
In the long run China is missing workforce.