Chinese manufacturing hub uses incentives to lure young workers

Companies in a manufacturing hub in south China are trying to attract and retain younger talent with training programs, higher salaries, and other government subsidies.

By 2025, there will be a shortage of nearly 30 million workers in China's manufacturing sector, the Ministry of Human Resources and Social Security estimates.

One reason could be that young people are losing interest in manufacturing as a career.

Young workers have said they would rather shuttle deliveries through crowded, chaotic streets than do a repetitive task on a traditional conveyor line in a factory as they aren't bound by strict employee rules.

"A factory worker can only earn about 4,000 to 5,000 (yuan) (about 628.3 to 785.4 U.S. dollars) (each month), but they have to wake up so early every morning and get off work so late," one deliveryman said.

To attract fresh, young talent, companies in manufacturing hubs like south China's Guangdong Province are considering salary increases.

They are also offering additional staff training to help workers expand their skills, knowledge and expertise.

"[Companies need to] offer more training to employees and give them a platform for growth and development. It is necessary for employees to enhance their skills," said Feng Haiyan, the head of the administrative and personnel department at a tech company in Guangzhou City in Guangdong Province.

What's more, companies are being encouraged to partner with recruiters and work to meet the requirements for government subsidies.

"[Companies can] work with headhunting or human resources agencies to look for talent. If the companies meet certain requirements, we can offer them subsidies of up to 500,000 (yuan) (about 78,538.5 U.S. dollars)," said Chen Jianling, the director of the Talent Exchange Service Center at the Jiangmen Municipal Human Resources and Social Security Bureau.

Part of the country's 14th Five-Year Plan from 2021 to 2025 is to boost vocational education and increase the number of high-level skilled workers in the manufacturing sector, and to train over 30 million rural migrant workers.