CBS News – May 1, 2006:

One of the defining myths of modern China — that it has a bottomless well of unskilled, low-wage laborers — is coming apart at the seams. And hardest hit are the southern coastal cities that produce much of America’s consumer bounty.

Some are responding with perks to attract job applicants as “Help Wanted” ads go unanswered. Others are subcontracting work to inland cities, chasing the young, single workers that once came knocking on their factory gates but are now in shorter supply.

“There’s a fixation that China has an abundant, unlimited supply of labor … so people initially said this was a temporary phenomenon. But now [they] realize it’s a general trend,” says Hong Liang, an economist at Goldman Sachs in Hong Kong, who studies China’s labor market.

While workers once flocked to cities like Dongguan, rising rural incomes and rapid growth in inland cities have diminished the appeal of migration to coastal boom towns — particularly among young, single women, whom factory bosses prefer to men as easier to manage. Staying close to home means access to health care and other benefits that migrants don’t always receive. So job seekers are playing harder to get.

“Girls are asking, ‘Do we get overtime? What are the benefits?'” says Kathy Deng, who owns a recruitment company in Guangzhou. “Guangdong needs workers. Zhejiang and Shanghai need workers. They have more choices. So it’s difficult to find workers.”