As China’s Workers Get a Raise, Companies Fret

Much like bargain-hunting consumers who go online to compare prices, workers around the globe are using Facebook and other social media to compare notes on workplace conditions and salaries, reports Keith Bradsher for the New York Times. The result is double-digit wage hikes, leading to higher prices for shoppers and shrinking profit margins for companies. Apparel factories are concentrated in coastal China, and increasingly there's a shortage of skilled workers willing to make long commutes to the congested area. Some analysts anticipate factories relocating to Bangladesh, Vietnam, India and even Central America, while others anticipate companies staying put in what is the world's largest and growing market for many products. Factory relocation can diversify company investments, but also adds to training costs and currency volatility. A trading executive speaking in Hong Kong dismissed US or Euopean workforces as an option, labeling them as old and non-replenishing. - YaleGlobal