Chinese factories plead for help

By William Foreman ASSOCIATED PRESS

XINTANG, China

During the first half of this year, Yang Zongfu's blue jean factory had few customers. Now, as his business picks up, he can't find enough workers.

Clutching a chalkboard with a long list of job openings, Mr. Yang joined about 30 other factory owners who have been spending their mornings at a street employment fair in the southern town of Xintang, the jean-manufacturing hub of China.

"I've been out here for two days and haven't found anyone," said Mr. Yang, as the scorching late morning sun beamed down on his sweaty, bald head.

The dearth of workers is a surprising turn in an economy where millions were laid off just months ago, and the government worried the jobless would riot. Back then, it was the workers roaming the streets looking for jobs.

The labor crunch is another sign that the Chinese economy - the world's third largest - is bouncing back from the global downturn, invigorated by government stimulus spending and a flood of cheap bank loans.

But experts say the shortage is also the result of a wariness among migrant workers - whom the government discouraged from traveling to cities when jobs were scarce - of returning before they are sure the economy has fully recovered.

China's economy has certainly begun to heat up, contributing to the increased demand for labor. The nation's economic growth hit 7.9 percent in the second quarter, up from 6.1 percent the previous quarter, the government said. Exports, retail sales and factory output also improved in July, according to official statistics.

In Xintang, Mr. Yang said his business started improving in August when domestic buyers started placing orders. His factory - which has received few overseas orders - is now ramping back up to its preslowdown head count of 100 from around 60 earlier this year, he said.

His chalkboard help-wanted sign advertises for one worker who can sew belt loops and another who can stitch pockets. He also needed a fabric stretcher, a pants hemmer and a zipper stitcher. Other factory bosses along the street displayed signs made out of red poster board or scraps of brown cardboard looking for textile workers.