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China faces skill crisis problem
http://www.sina.com.cn 2003/12/23 11:11  Shanghai Daily

  China is facing a skills crisis as an acute lack of experienced skilled workers threatens to slow down development in both the public and private sectors.

  Blue-collar workers who have traditionally fallen below white-collar workers on China's social ladder, are now commanding higher salaries in a host of cases as companies feel threatened by the shortage of vital skills.

  The crisis has affected a natural gas project, part of the West-to-East gas pipeline, has grounded to a halt in the city of Hefei, Anhui Province, because of a lack of welders.

  Experienced skilled workers edged into the top 10 of most required professionals with monthly salaries exceeding 5,000 yuan (US$605) in Beijing.

  According to statistics with the Ministry of Labor and Social Security released on Friday, China now has 140 million urban enterprise employees, of whom approximately 70 million are skilled workers.

  However, experienced workers only make up 4 percent of the national total, far behind the average level of 30 to 40 percent in developed nations.

  The shortage of such skills can lower quality and competitiveness in an enterprise, and even affect the growth of an entire industry or the national economy.

  Only 70 percent of China's industrial products meet required standards, and defective goods have led to annual losses of up to 200 billion yuan (US$24 billion).

  The lack of skilled workers in the front-line production sector has also impaired the commercial application of scientific technologies.

  Only about 15 percent of research findings in China are put into application.

  Technology contributes to merely 30 percent of the country's economic growth, far lower than the 60 to 80 percent in developed nations.

  Officials with the training and employment department of MLSS acknowledged that senior workers, whose status and income are often several grades down from leaders and managers in enterprises, have long been overlooked in the "skills" list in China.

  China's vocational education is also suffering setbacks.

  By the end of 2002, over 600 vocational schools had stopped recruitment due to drops in student numbers.

  However, experts say businesses will have to pay senior workers more preferentially.

  In the "Price level guidelines for the labor market" released in Shenzhen, Guangdong Province, this year, the earnings of fitters exceeded that of "white collar" jobs that college graduates usually prefer.

  Yuan Yue, chairman of Beijing-based Horizon Market Research, said that more colleges and universities should shoulder the task of vocational training, as China is in dire need of trained senior technicians.

  "People should learn to show more respect for 'blue collars,' since their labor is indispensable to our society," Yuan said.




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