Page 6 - SCBJ-201606
P. 6
NA BRIEFING South China Business Journal 20-24 is expected to decline from 125
million to 68 million over the next decade.
The Changing Further, this generation is better educated
Landscape than previous ones, and thus has less
of China’s interest in poorly paid and physically
Manufacturing demanding manufacturing jobs.
Sector
Hiring Practices
By Alexander Chipman Koty Age Demographics
In response to the emergence of the
The relentless momentum of During the years of double digit growth, domestic service industry, growth in
investors turning their sights towards the manufacturing sector capitalized on China’s Western regions, and more
China has softened of late, as slowing China’s massive supply of young able- stringent labor protection laws, factories
growth and stock market volatility have bodied workers. High birthrates during are changing who they hire and how
caused alarm among observers. In 2015, the 1960s and 1970s contributed to a they do so. Chinese employers have
FDI into China’s manufacturing sector demographic dividend that flooded the traditionally favored hiring women for
came in at US$39.54 billion, a slight labor market with cheap, young, and many labor-intensive industries. At
drop from 2014 (US$39.94 billion) and strong workers – prime for the physical its peak, women comprised about 80
accounting for 31.4 percent of the total. demands of manufacturing. Children percent of the workforce for occupations
While some of these fears are grounded born during these years entered their such as toy and electronic assembly.
in reality, others are overblown. This late teens and early 20s during the Men are now much more prominent in
is particularly true in relation to the 1980s and 1990s, coinciding with the these areas, as many women previously
manufacturing sector – China’s principal government’s shift from a planned working in manufacturing have instead
driver of growth during its boom years – economy to an increasingly market- opted to join the service sector. In 2013,
which made the country known as “the based one open to foreign investment. services surpassed manufacturing as the
factory of the world”. This fortuitous combination greatly largest contributor to China’s GDP. The
contributed to China’s historic growth and proliferation of restaurant and coffee
After decades of rapid growth and industrialization. franchises and other service industries
development, China’s manufacturing catering to domestic consumers has
sector is inevitably changing. Shifts These same workers, however, are aging attracted many unskilled female workers
in demographics, hiring practices, and beginning to retire from labor- who enjoy better conditions than in many
technology, and markets are increasingly intensive manufacturing jobs. The amount manufacturing positions.
giving Chinese manufacturing a different of people aged 60 and above are projected
look than during its years of unabated to grow from 200 million in 2015 to over Workers not only have greater choice
growth. These transformations are 300 million by 2030. In contrast, the over which industry to work in, but
not unconditionally negative for the amount of young workers is dwindling where to work. Migrant workers have
country’s competitiveness, however. as a result of urbanization, rising living traditionally comprised at least a third of
China’s evolving manufacturing sector standards, and the infamous One-Child China’s total labor pool. Because of the
will invariably change the way investors Policy. While China’s elderly population prohibitive hukou housing registration
operate their factories and presents new is ballooning, the amount of youth aged system, employers regularly exploited
opportunities for growth in the country’s migrant workers by withholding payment,
increasingly multifaceted economy. not contributing to employee benefits,
and forcing massive amounts of unpaid
overtime. However, as manufacturing
spreads and relocates from China’s
wealthy coastal regions towards the less
developed interior, workers have fewer
incentives to travel far from home for
employment and are consequently less
vulnerable to exploitation.
4
million to 68 million over the next decade.
The Changing Further, this generation is better educated
Landscape than previous ones, and thus has less
of China’s interest in poorly paid and physically
Manufacturing demanding manufacturing jobs.
Sector
Hiring Practices
By Alexander Chipman Koty Age Demographics
In response to the emergence of the
The relentless momentum of During the years of double digit growth, domestic service industry, growth in
investors turning their sights towards the manufacturing sector capitalized on China’s Western regions, and more
China has softened of late, as slowing China’s massive supply of young able- stringent labor protection laws, factories
growth and stock market volatility have bodied workers. High birthrates during are changing who they hire and how
caused alarm among observers. In 2015, the 1960s and 1970s contributed to a they do so. Chinese employers have
FDI into China’s manufacturing sector demographic dividend that flooded the traditionally favored hiring women for
came in at US$39.54 billion, a slight labor market with cheap, young, and many labor-intensive industries. At
drop from 2014 (US$39.94 billion) and strong workers – prime for the physical its peak, women comprised about 80
accounting for 31.4 percent of the total. demands of manufacturing. Children percent of the workforce for occupations
While some of these fears are grounded born during these years entered their such as toy and electronic assembly.
in reality, others are overblown. This late teens and early 20s during the Men are now much more prominent in
is particularly true in relation to the 1980s and 1990s, coinciding with the these areas, as many women previously
manufacturing sector – China’s principal government’s shift from a planned working in manufacturing have instead
driver of growth during its boom years – economy to an increasingly market- opted to join the service sector. In 2013,
which made the country known as “the based one open to foreign investment. services surpassed manufacturing as the
factory of the world”. This fortuitous combination greatly largest contributor to China’s GDP. The
contributed to China’s historic growth and proliferation of restaurant and coffee
After decades of rapid growth and industrialization. franchises and other service industries
development, China’s manufacturing catering to domestic consumers has
sector is inevitably changing. Shifts These same workers, however, are aging attracted many unskilled female workers
in demographics, hiring practices, and beginning to retire from labor- who enjoy better conditions than in many
technology, and markets are increasingly intensive manufacturing jobs. The amount manufacturing positions.
giving Chinese manufacturing a different of people aged 60 and above are projected
look than during its years of unabated to grow from 200 million in 2015 to over Workers not only have greater choice
growth. These transformations are 300 million by 2030. In contrast, the over which industry to work in, but
not unconditionally negative for the amount of young workers is dwindling where to work. Migrant workers have
country’s competitiveness, however. as a result of urbanization, rising living traditionally comprised at least a third of
China’s evolving manufacturing sector standards, and the infamous One-Child China’s total labor pool. Because of the
will invariably change the way investors Policy. While China’s elderly population prohibitive hukou housing registration
operate their factories and presents new is ballooning, the amount of youth aged system, employers regularly exploited
opportunities for growth in the country’s migrant workers by withholding payment,
increasingly multifaceted economy. not contributing to employee benefits,
and forcing massive amounts of unpaid
overtime. However, as manufacturing
spreads and relocates from China’s
wealthy coastal regions towards the less
developed interior, workers have fewer
incentives to travel far from home for
employment and are consequently less
vulnerable to exploitation.
4
