China Surplus Labor to Disappear by 2025, IMF Researchers Say – Bloomberg 01-31-13

Salient to Investors:

Mitali Das and Papa N’Diaye at the IMF said China’s supply of low-cost workers will run out between 2020 and 2025  pushed by a precipitous drop in the working-age population, and necessitating a shift to a more intensive growth model with a greater reliance on improving total factor productivity.

A 2010 paper – “China Has Reached the Lewis Turning Point” – from the International Food Policy Research Institute said dramatic increases in inflation-adjusted wages since 2004 indicate the era of surplus labor is over.

Read the full article at http://www.bloomberg.com/news/2013-01-31/china-surplus-labor-to-disappear-by-2025-imf-researchers-say.html

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