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China losing global labor advantage

hina is losing its edge in the worldwide labor market as it will suffer a shortage of laborers due to the family planning policy, a think-tank said Wednesday in a report.

China needs to put more emphasis on education, both in cities and rural areas, to cope with its rising labor challenges, the report said.

The move to improve China's global labor competitiveness is urgent because the country is losing its edge in the worldwide labor market, with fewer workers in the labor pool.

Also, the country will continue to upgrade its manufacturing-oriented economy, requiring more skilled and educated workers, according to the report.

"China is gradually losing its labor surplus, which has created the country's success story in the past 30 years," said Wang Dewen, professor of the Institute of Population and Labor Economics, of Chinese Academy of Social Sciences, the publisher of the yearly report.

"But now it needs a second labor advantage," he said. "And that is the improvement of labor skills and their level of education," Wang said.

The average student in the countryside attends school only 6.8 years, despite the country's mandate for a nine-year compulsory education.

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 Source : China Daily  Editor: Ivy
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