# Younger Chinese are spurning factory jobs that power the economy Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-11-21 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Young Chinese Reject Grind of Factory Work Meta Description: Discover how younger Chinese workers are rejecting grueling factory jobs, leading to a labour shortage in China's manufacturing sector. URL: https://financedigest.com/younger-chinese-are-spurning-factory-jobs-that-power-the-economyhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-11-21t020649z3lynxmpeiak00wrtroptp4china-economy-factories-1736814843765-compressed.jpg) By David Kirton SHENZHEN (Reuters) – Growing up in a Chinese village, Julian Zhu only saw his father a few times a year when he returned for holidays from his exhausting job in a textile mill in southern Guangdong province. For his father’s generation, factory work was a lifeline out of rural poverty. For Zhu, and millions of other younger Chinese, the [low pay](https://www.financedigest.com/flexible-pay-can-boost-low-productivity-in-the-uk.html "Flexible pay can boost low productivity in the UK"), long hours of drudgery and the risk of injuries are no longer sacrifices worth making. After a while that work makes your mind numb,” said the 32-year-old, who quit the production lines some years ago and now makes a living selling milk formula and doing scooter deliveries for a supermarket in Shenzhen, China’s southern [tech hub](https://www.financedigest.com/jaguar-land-rover-opens-three-european-self-driving-tech-hubs.html "Jaguar Land Rover opens three European self-driving tech hubs"). “I couldn’t stand the repetition.” The rejection of grinding factory work by Zhu and other Chinese in their 20s and 30s is contributing to a deepening labour shortage that is frustrating manufacturers in China, which produces a [third of the goods consumed globally](https://www.financedigest.com/rate-rise-fears-prompt-third-week-of-global-equity-funds-outflows.html "Rate rise fears prompt third week of global equity funds outflows"). Factory [bosses say](https://www.financedigest.com/exclusive-qatarenergy-boss-says-world-cup-tension-will-not-impact-german-business.html "Exclusive-QatarEnergy boss says World Cup tension will not impact German business") they would produce more, and faster, with younger blood replacing their ageing workforce. But offering the higher wages and better working conditions that younger Chinese want would risk eroding their [competitive advantage](https://www.financedigest.com/turning-big-data-compliance-into-a-competitive-advantage.html "TURNING ‘BIG DATA’ COMPLIANCE INTO A COMPETITIVE ADVANTAGE"). And smaller manufacturers say [large investments](https://www.financedigest.com/large-investment-success-for-basingstoke-cybersecurity-start-up.html "Large investment success for Basingstoke cybersecurity start-up") in automation technology are either unaffordable or imprudent when rising inflation and borrowing costs are curbing demand in China’s key export markets. More than [80% of Chinese manufacturers faced labour shortages ranging from hundreds to thousands of workers](https://www.financedigest.com/80-of-workers-not-saving-enough-for-retirement.html "80% of workers not saving enough for retirement") this year, equivalent to 10% to 30% of their workforce, a survey by CIIC Consulting showed. [China’s Ministry of Education forecasts](https://www.financedigest.com/ferragamo-sales-beat-forecasts-in-h1-despite-slowdown-in-china.html "Ferragamo sales beat forecasts in H1 despite slowdown in China") a shortage of nearly 30 million manufacturing workers by 2025, larger than Australia’s population. On paper, labour is in no short supply: roughly 18% of Chinese aged 16-24 are unemployed. This year alone, a cohort of 10.8 million graduates entered a [job market](https://www.financedigest.com/global-share-markets-rise-bonds-fall-on-u-s-jobs-data.html "Global share markets rise, bonds fall on U.S. jobs data") that, besides manufacturing, is very subdued. China’s economy, pummelled by COVID-19 restrictions, a [property market](https://www.financedigest.com/2017-spanish-property-market-gems-kyero-com-gazes-into-the-crystal-ball.html "2017 Spanish property market gems – Kyero.com gazes into the crystal ball") downturn and regulatory crackdowns on tech and other private industries, faces its slowest growth in decades. Klaus Zenkel, who chairs the European Chamber of Commerce in South China, moved to the region about two decades ago, when university graduates were less than one-tenth this year’s numbers and the [economy as a whole was about 15 times smaller](https://www.financedigest.com/uk-economy-set-for-smaller-hit-in-2023-than-previously-feared-imf.html "UK economy set for smaller hit in 2023 than previously feared – IMF") in current U.S. dollar terms. He runs a [factory in Shenzhen with around 50 workers](https://www.financedigest.com/volkswagens-mexico-factory-workers-reject-union-pay-deal.html "Volkswagen’s Mexico factory workers reject union pay deal") who make magnetically shielded rooms used by hospitals for MRI screenings and other procedures. Zenkel said [China’s breakneck economic growth in recent years had lifted](https://www.financedigest.com/dollar-slips-yuan-gains-on-china-pmi-hot-inflation-lifts-euro.html "Dollar slips, yuan gains on China PMI; hot inflation lifts euro") the aspirations of younger generations, who now see his line of work as increasingly unattractive. “If you are young it’s much easier to do this job, climbing up the ladder, doing some machinery work, handle tools, and so on, but most of our installers are aged 50 to 60,” he said. “Sooner or later we need to get more young people, but it’s very difficult. Applicants will have a quick look and say ‘no, thank you, that’s not for me’.” The [National Development](https://www.financedigest.com/four-reasons-why-smes-in-developing-nations-should-embrace-a-cashless-society.html "Four reasons why SMEs in developing nations should embrace a cashless society") and Reform Commission, China’s macroeconomic management agency, and the education and human resources ministries did not reply to requests for comment. MODERN TIMES Manufacturers say they have three main options to tackle the labour-market mismatch: sacrifice [profit margins to increase](https://www.financedigest.com/4-tips-for-landlords-to-increase-rental-property-profits.html "4 Tips for Landlords to Increase Rental Property Profits") wages; invest more in automation; or hop on the decoupling wave set off by the heightened rivalry between China and the West and move to cheaper pastures such as Vietnam or India. But all those choices are difficult to implement. Liu, who runs a factory in the [electric battery](https://www.financedigest.com/battery-swapping-spurs-kenyas-electric-motorbike-drive.html "Battery swapping spurs Kenya’s electric motorbike drive") supply chain, has invested in more-advanced production equipment with better digital measurements. He said his older [workers struggle to keep up with the faster gear](https://www.financedigest.com/apple-workers-in-australia-gear-up-for-more-strike-action.html "Apple workers in Australia gear up for more strike action"), or read the data on the screens. Liu, who like other factory [chiefs declined to give his full name](https://www.financedigest.com/iris-software-group-names-matt-tuson-as-chief-revenue-officer.html "IRIS Software Group names Matt Tuson as Chief Revenue Officer") so he could speak freely about China’s economic slowdown, said he tried luring younger workers with 5% higher wages but was given a cold shoulder. “It’s like with Charlie Chaplin,” said Liu, describing his workers’ performance, alluding to a scene in the 1936 movie “Modern Times”, about the anxieties of U.S. [industrial workers](https://www.financedigest.com/industries-with-the-most-workplace-accidents-and-workers-comp-benefits.html "Industries with the Most Workplace Accidents and Workers Comp Benefits") during the Great Depression. The main character, Little Tramp, played by Chaplin, fails to keep up with [tightening bolts on a conveyer belt](https://www.financedigest.com/ocado-retail-cuts-outlook-as-britons-tighten-belts.html "Ocado Retail cuts outlook as Britons tighten belts"). Chinese policymakers have emphasised [automation and industrial](https://www.financedigest.com/industrial-automation-incentives-by-governments-in-emerging-economies-drive-industrial-robots-market-fmi-study.html "Industrial Automation Incentives by Governments in Emerging Economies Drive Industrial Robots Market: FMI Study") upgrading as a solution to an ageing workforce. The country of 1.4 billion people, on the brink of a demographic downturn, accounted for half of the robot installations in 2021, up 44% year-on-year, the International Federation of Robotics said. But automation has its limits. Dotty, a general manager at a stainless-steel treatment factory in the city of Foshan, has automated product packaging and work surface cleaning, but [says a similar fix](https://www.financedigest.com/u-s-france-agreed-to-fix-u-s-subsidies-issues-says-macron.html "U.S., France agreed to “fix” U.S. subsidies issues, says Macron") for other functions would be too costly. Yet [young workers](https://www.financedigest.com/why-technology-will-free-britains-young-workers-from-presenteeism-in-the-workplace.html "WHY TECHNOLOGY WILL FREE BRITAIN’S YOUNG WORKERS FROM PRESENTEEISM IN THE WORKPLACE") are vital to keep production moving. Our products are really heavy and we [need people](https://www.financedigest.com/people-need-people-humanising-the-digital-banking-experience.html "People need People – Humanising the digital banking experience") to transfer them from one processing procedure to the next. It’s [labour intensive in hot](https://www.financedigest.com/uks-hot-labour-market-cools-and-inflation-eats-pay.html "UK’s hot labour market cools and inflation eats pay") temperatures and we have difficulty hiring for these procedures,” she said. Brett, a manager at a factory making [video game](https://www.financedigest.com/ubisoft-shares-slump-20-after-french-video-game-maker-warns-on-revenue.html "Ubisoft shares slump 20% after French video game maker warns on revenue") controllers and keyboards in Dongguan, said orders have halved in recent months, and that many of his peers were moving to Vietnam and Thailand. He is “just thinking about how to survive this moment,” he said, adding he expected to lay off 15% of his 200 workers even as he still wanted younger muscles on his assembly lines. CONFLICTING ASPIRATIONS The competitiveness of China’s export-oriented [manufacturing sector has been built over several decades on state-subsidised investment](https://www.financedigest.com/uk-becoming-less-attractive-for-investment-manufacturers-warn-2.html "UK becoming less attractive for investment, manufacturers warn") in production capacity and low labour costs. The preservation of that [status quo](https://www.financedigest.com/pelosi-praises-taiwan-says-asian-trip-wasnt-to-change-status-quo.html "Pelosi praises Taiwan, says Asian trip wasn’t to change status quo") is now clashing with the aspirations of a generation of better-educated Chinese for a more comfortable life than the sleep-work-sleep daily grind for tomorrow’s meal their parents endured. Rather than settling for jobs below their education level, a [record 4.6 million](https://www.financedigest.com/ireland-fines-instagram-a-record-400-million-over-childrens-data.html "Ireland fines Instagram a record 0 million over children’s data") Chinese applied for postgraduate studies this year. There are 6,000 applications for each civil service job, [state media reported this month](https://www.financedigest.com/inflation-in-key-german-states-eases-for-second-month.html "Inflation in key German states eases for second month"). Many young Chinese are also increasingly adopting a minimal lifestyle known as “lying flat”, doing just enough to get by and [rejecting the rat race of China](https://www.financedigest.com/ftse-100-rebounds-on-china-optimism-thg-surges-after-rejecting-buyout-bid.html "FTSE 100 rebounds on China optimism; THG surges after rejecting buyout bid") Inc. Economists say market forces may compel both young [Chinese and manufacturers to curb](https://www.financedigest.com/were-going-to-be-free-chinese-cheer-as-covid-curbs-are-loosened.html "‘We’re going to be free’: Chinese cheer as COVID curbs are loosened") their aspirations. The unemployment situation for young people may have to be much worse before the mismatch could be corrected,” said Zhiwu Chen, professor of [finance at the University of Hong Kong](https://www.financedigest.com/hong-kong-finance-official-to-make-first-visit-to-britain-in-three-years.html "Hong Kong finance official to make first visit to Britain in three years"). By 2025, he said, there may not be much of a [worker shortfall “as the demand](https://www.financedigest.com/apples-australian-workers-go-on-christmas-strike-demanding-better-wages-work-terms.html "Apple’s Australian workers go on Christmas strike demanding better wages, work terms") will for sure go down. ‘YOU FEEL FREE’ Zhu’s first job was to screw fake diamonds into wristwatches. After that he worked in another factory, moulding tin boxes for mooncakes, a traditional Chinese bakery product. His [colleagues shared gruesome stories about workplace](https://www.financedigest.com/a-sensitive-guide-to-supporting-your-female-colleagues-in-the-workplace.html "A sensitive guide to supporting your female colleagues in the workplace") injuries involving sharp metal sheets. Realising he could avoid reliving his father’s life, he quit. Now doing sales and deliveries, he earns at least 10,000 yuan ($1,421.04) a month, depending on how many hours he puts in. That’s almost double what he would earn in a factory, though some of the difference goes on accommodation, as many factories have their own dorms. It’s [hard work](https://www.financedigest.com/uk-pm-sunaks-office-says-the-hard-work-begins-now35794.html "UK PM Sunak’s office says ‘the hard work begins now’"). It’s dangerous on the busy roads, in the wind and rain, but for younger people, it’s much better than factories,” Zhu said. “You feel free.” Xiaojing, 27, now earns 5,000 to 6,000 yuan a month as a masseuse in an upscale area of Shenzhen after a three-year stint at a printer [factory](https://www.financedigest.com/japans-factory-output-posts-biggest-fall-in-8-months-on-weak-autos-chips-sectors.html "Japan’s factory output posts biggest fall in 8 months on weak autos, chips sectors") where she made 4,000 yuan a month. “All my friends who are my age left the factory,” she said, adding that it would be a tall order to get her to return. “If they paid 8,000 before overtime, sure.” ($1 = 7.0371 Chinese yuan renminbi) (Editing by Marius Zaharia and David Crawshaw) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---