Shortages of migrant laborers in some parts of China has begun to impact the productivity of manufactures and raise labor costs, according to a survey released by China's central bank Thursday.

The survey conducted by the People's Bank of China in Guangdong,Fujian, Jiangsu and Sichuan Provinces, where many of China's migrant laborers are from, shows that the labor shortages, which began to surface in 2003, have grown more severe.

With its 19 million rural laborers mostly working in the Pearl River Delta, south China's Guangdong Province faces a shortage of nearly two million workers. This accounts for about 10 percent of local market demand.

In east China province Fujian, the shortage by the end of 2004 was as much as 200,000, according the survey.

Most companies in need of rural laborers are involved in work that is labor-intensive, are small or medium-sized businesses and engaged in toy manufacturing, electronic assembly, attire making and plastic processing. Old hands with some expertise as well as physical workers, especially young women, are the most wanted.

Causes for the shortage are listed as rapid economic growth generating a larger demand for workers, more proceeds from farmingwhich makes more farmers stay home, poor working conditions in cities and the lack of guarantee for rural laborers' benefits.

According to the survey, the shortage has forced companies to raise rural laborers' pay. With the gradual implementation of government policies on rural laborers' medical insurance, pension and other social benefits, Chinese manufacture and processing companies will face higher labor costs, it says.

An immediate result of the shortage, is that some labor-intensive companies have started to move from the eastern coast to middle and western regions of China, where they can pay workers less.

Source: Xinhua