(Yicai Global) April 22 -- China should support its manufacturing sector that is dealing with labor shortages due to low pay, which is driving automation, according to experts.

The government should target the secondary industry with policies involving technology and asset impairment, Zeng Xiangquan, director at the Renmin University of China's Institute for Employment Research, told Yicai Global.

About 44 percent of big Chinese industrial enterprises said recruitment is their biggest problem with the share rising to the highest over the past few years, according to a recent survey done by the National Bureau of Statistics.

The country could use a thorough study into how the CNY100 billion (USD15.4 billion) worth of vocational training funds could be used for employee training at manufacturing companies, Zheng suggested.

China should learn from the experience of Germany and Japan to promote the spirit of craftsmanship and improve the treatment and social status of industrial workers, said Yao Kai, director at Fudan University's research center for scientific innovation talent development.

Low Pay

The reason behind the shrinking blue-collar workforce is low pay but companies may choose to replace their workers with machines or move their plants overseas instead of raising salaries to keep the costs economical, said Zeng. Moreover, the aging population makes factories even emptier, said Yao.

Booming online platforms have lured workers from plants to deliver food or parcels or offer ride-hailing services in big cities to make good money by working more flexible but longer hours, according to the two experts.

Blue-collar jobs pay CNY3,958 (USD610) a month on average in China, according to the NBS's report in 2019. But that may look unattractive as salaries in logistics and warehousing are CNY4,667 and those in construction CNY4,576.

But factories are not going anywhere. The new service sector cannot replace the role of the manufacturing industry, said Zeng. Someone will still need to produce the goods that are ordered online and the containers for takeout.

Editor: Emmi Laine, Xiao Yi