Nearly six in 10 of the companies, or 59 percent, surveyed in the latest Hong Kong Trade Development Council (HKTDC) Export Index said the labor shortage after the Chinese New Year holiday was more severe this year than it was last year. Another 39 per cent said the situation was more or less the same. The quarterly survey found about half of the companies surveyed experienced labor shortages first-hand or with their suppliers after the Chinese New Year holiday.



During the holiday, which was observed between Feb. 9 to Feb. 15 this year, many of Chinas migrant workers leave their factory jobs in the countrys coastal regions to return home. In recent years, more have opted to remain in their home provinces, where employment prospects have been steadily improving as the Chinese government seeks to reduce rural unemployment.   That has left many factories understaffed and lead to quality control problems, delayed shipments and other problems for importers of Chinese goods.


The quarterly survey also found Hong Kong exporters grew significantly more confident about the future in the first quarter of 2013, causing the Export Index to rebound to 49.5 from 31.6 recorded in the fourth quarter of last year. HKTDC Director of Research Edward Leung noted the indices for the Chinese mainland and the United States leapt over the watershed 50 mark.


He said the Chinese governments plans to build 20 city clusters across the country would spur consumer spending across several sectors, including retail and entertainment. Preliminary statistics for last year show per capita consumption for Chinas urban dwellers was about three times that of rural residents, but the average income of those living in the countryside also has accelerated. Leung anticipated that efforts to promote urbanization would further drive income levels and boost purchasing power.


Despite the China bashing heard during last years presidential race, Leung saw no major change  in Sino-U.S. trade relations.