For years, China has become the World’s Great Factory, where companies like Apple used cheap labor while lack of education pushed young people to work in blue-collar jobs, producing goods at a much lower cost than in the West. Now, their Generation Z has put a stop to this trend.
Just as it happened in the United States and Europe in the 90s, those workers who toiled in factories under harsh working conditions and meager wages did everything possible to ensure their children had a better life. As the country’s wealth grew, so did that of its lower classes, reaching a point of no return.
China’s Generation Z no longer wants blue-collar jobs
These young people now have the necessary education to avoid the hardships and working conditions their parents endured. Fully aware of their new status, this Generation Z refuses to fill the factory positions that the aging population is creating.
The country’s response has been to modernize its factory positions, not only by increasing wages that have eliminated the concept of cheap labor, but also by offering enough incentives to prevent talent drain. What used to be dark factories with questionable conditions are now large companies that include cafeterias and daycares to attract these young people.
However, despite efforts, the measure is proving to be ineffective. With a youth unemployment rate of 21.3% among those under 25, China is seeing the rising production costs driving away major companies that sought cheaper manufacturing there.
With areas like Indonesia and Thailand facing a similar situation, companies like Apple are now looking to India, Brazil, Mexico, and other countries like the United Arab Emirates to try to maintain the cost levels they had in China. A perfect storm that is challenging the country’s hegemony not only in labor, but also economically and culturally.
Image | Mjrinw
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