"In a 2015 study, the Boston Consulting Group said the costs of manufacturing in China’s major export-producing zone were now almost the same as in the United States..."
Michael Schuman, New York Times
It seems like just yesterday that we were hearing about a lack of sufficient labor for China's toy and play factories. Now, according to a New York Times article by Michael Schuman, we learn that unemployment is becoming an issue for China's work force.
Why are their fewer jobs? According to the article, "Is China Stealing Jobs? It May Be Losing Them, Instead," we learn that: "They are losing their jobs because of a slowing domestic economy, rising costs and stiffer foreign competition — including from the United States."
What is ironic, however, is that afore mention under supply of labor is a primary cause of the undersupply of jobs today. It seems that, in order to secure whatever labor supply was available, factories (toy manufacturing center Shenzhen is mentioned in particular) raised wages to attract talent. According to the article, wages for factory workers in China are now 29% higher than they were three years ago.
Because of that: "Factory workers in Vietnam earn less than half the salary of a Chinese worker, while those in Bangladesh get paid under a quarter as much." Is it any wonder that India, Indonesia, Viet Nam and other Asian countries are now effectively vying for business that used to go to China by default.
So what does this mean for the United States and toy manufacturers?