Harbin is suffering severe industrial labour shortages, according to a report released by the city's Labour and Employment Bureau.

Statistics for the second quarter of this year reveal that certain industries, including services and construction, are all facing problems with worker numbers.

These sectors account for more than half of the Harbin's total labour demand, with an estimated 50,000 labourers required on construction sites and in restaurants, according to the report.

"It is a strange phenomenon," Men Xianjun, director of the Harbin Municipal Labour Market said.

"On one side, there are many job seekers queuing in the labour markets. On the other side, many places are suffering severe labour shortages.

"The obvious reason for this is that the two sides cannot reach a satisfying price."

Zhang Zhihe, a farmer from Henan Province, has wandered around the city's labour market for three days and still cannot find a job.

Zhang, who wants to find work in a restaurant, said that a lack of vacancies was not the problem, just that jobs on offer were not very attractive.

"I have been to many restaurants in the last two days, but they didn't pay well," he said.

Zhang said a restaurant advertized wages of 600 yuan (US$72) per month.

"However, when I went there, the owner was only willing to pay 400 yuan (US$48) per month," he said.

Han Yulong, from the Municipal Labour and Employment Bureau, told China Daily that, in addition to low pay, job seekers were put off by the high number of wage default cases.

"Restaurants and construction sites often have a high demand for labourers, so job mobility is very high," he said.

"However, they often do not have formal labour deals. Once a labour dispute occurs, it is very hard for workers to defend their legal interests."

"The government's readjustment of its agriculture policies, such as the cancellation of agriculture tax, also means more farmers are willing to stay in their fields," he added.

Labour shortage is a growing problem in many areas of China.

The Chinese Academy of Social Sciences estimates that some key areas in China's prosperous regions, such as the Pearl River Delta region and Fujian Province, are suffering labour shortages of around 10 per cent.

(China Daily July 20, 2005)