As China Ages, a Shortage of Cheap Labor Looms

The world’s most populous nation may soon face a labor shortage. Chinese traditionally retire at age 60. But expansion of nursing homes and home care provide evidence of a demographic shift and aging population, which could pressure China’s already stretched pension program. Analysts debate the wisdom of relaxing laws such as the one-child policy and restrictions on internal migration to ease labor shortages in wealthier, older coastal cities. Some analysts fear that foreign manufacturers will relocate to India, Vietnam or Bangladesh with younger populations. Other officials fear that easing restrictions would encourage rural migrants to overwhelm China’s cities. Big imbalances – in the form of overpopulation or an aging population – have no easy solutions. – YaleGlobal