According to the Wall Street Journal, as young generations is Asia turn away from hard working manufacturing jobs, there is a serious shortage of workers in factories around the world, which will also lead to higher prices for American consumers. The current situation analysis is summarized as follows:
- Asia is facing a generational change problem that majority of young people are more educated than their parents and deeply infulenced by the proliferation of online social media. They are keen to become internet celebrities, photographers, beauty stylists, or working in service industries, rather than working in factories.
- In order to attract the new generation of young workers, companies have not only increased wages and benefits, but also tried to redecor the workplace. According to data from the United Nations International Labor Organization, factory wages in Vietnam have more than double since 2011 to a monthly salary of US $320, which is three times the wage increase in the United States. Mainland China data also shows that factory wages have increased 122% from 2012 to 2021.
- Labor shortages in Vietnam and Mainland China have significantly pushed up factory production costs and are reflected in commodity prices. End consumers must adapt to the new rules.