According to a report, in the recent years, “labor shortages” and “layoffs” have become common terms in the Chinese LED manufacturing industry. In Guangdong Province, short term labor shortages have increased in 2014 to reach between 800,000 to 1 million workers.
The survey also showed SMEs tend to have average worker labor shortages, and SMEs also had the greatest employee turnover rate of 57.14%. China’s downstream LED lighting manufacturers tend to have the greatest shortages in this area. Average manufacturers employee turnover rates is about 10%~15%. Due to China’s strong labor rights movement, employees’ payment and packages have improved in recent years. Still, worker shortages continue to be a major issue in the Pearl River Delta region in China. With the region losing its salary advantages, some migrating workers are choosing to work closer to their home towns.
In addition, sales and engineers turnover rates in the industry ranked in 2nd and 3rd place at 52.38% and 42.86% respectively. Renowned large manufacturers had the greatest demands for sales and engineer staff. Senior sales and engineers are highly sought after in the industry, and will often seek manufacturers that they are compatible with. On the other hand, high sales and engineer turnover rates are closely related to the industry’s lack of employee training mechanisms.