China's factories hit an unlikely shortage: labor

She's not alone. A survey of members by the Asia Footwear Association in Hong Kong found earlier this year that many Chinese shoemakers were understaffed, some by as much as 60 percent. Newly built plants in Dongguan are idle for lack of workers, says Percy Lan, an entrepreneur who publishes a footwear industry magazine. He says the industry employs around 1 million laborers in Dongguan, but needs 100,000 more.

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 boomtowns - particularly among young, single women, whom factory bosses prefer to men as easier to manage. Staying close to home means access to healthcare 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."

Growing affluence in Pearl River cities also means new job alternatives. Away from Dongguan's grimy factory belt, SUVs stream along highways to upscale neighborhoods that are hungry for manpower. "No matter how much you pay [in factories where wages average $100 per month], the service industry pays more. People want to work in stores, or be waiters in five-star hotels," says Mr.Lan, the shoe industry publisher. Some footwear plants are responding by upgrading worker dormitories, cafeterias, and bathrooms.

But the improvements aren't enough to keep migrant worker Xiong Kejing around. He's spent the last nine years working factory and construction jobs, trying to save money, and is ready to head home with his wife and baby daughter to Chongqing, a 36-hour journey by bus.

He's heard stories of higher wages in Shanghai, but is skeptical about another stint as a migrant, either in Dongguan or another coastal city. "You can't stay out here forever. There's probably more opportunities back home now; we can open our own business," he says.

It's not only factories that are feeling pinched by the departure of migrants like Xiong.Affluent cities in the Pearl River Delta have come to rely on migrant workers to wash dishes, cut hair, and take care of the young and elderly.

Down a narrow side street in Guangzhou, the provincial capital, dozens of women sit inside a yellow-walled job agency for domestic servants swapping stories and waiting for offers. Liu Bin, who runs the place, says the tight labor market is forcing employers to pay more and be less picky about whom they hire.

As she finishes speaking, a trio of middle-aged women enquire about finding a replacement nurse for their octogenarian parents. Braced for a pay raise, they're ready to pay nearly double the monthly 450 yuan ($55) a caregiver cost three years ago. "It's really hard to hire someone from Guangzhou," sighs Cai Rongqiu, one of the three women. "They don't want to be nurses; they want a job with good pay, fixed hours, and an easy life."

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