Some industries such as manufacturing, service and trade have been facing labor shortage. This problem could worsen and hamper the country's economic growth.

People may wonder why China is facing labor shortage when it has the largest population in the world. The causes are rather complicated. Because of the family planning policy, the number of young people in the country is decreasing in relation to the aging population.

Industries in China are suffering from shortage of skilled workers, and although people with higher education are finding it difficult to get a job of their choice, they are not willing to work in factories.

The government and enterprises have to invest more on workers' training to increase their productivity and innovative capabilities if they want to improve the situation.

Also, the government has to loosen the family planning policy. Extending the retirement age, too, can help improve the situation.

China has reached an important point in its development path and, hence, has to adopt a different attitude to social and economic development to guarantee a more prosperous future.

Shen Ye, via e-mail

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(China Daily 04/26/2011 page9)